A Study On Asymmetry Industry Effects To China’s Monetary Policy

Since the implementation of reform and open policy, our country has been drawing worldwide attention for the development in economy. Monetary Policy as a political tool plays the key role in this procedure. Whether monetary policy can make more effect on the three-industry becomes an important subject in now days. Monetary policy is an important tool for regulating macroeconomic. The two points are the direction and timing, which will have important implications on the quality of development. So it has been a hot topic of academic research. It have lots of studies concerning about monetary policy effects of the economic regulation, these studies are mostly based on the total impact of monetary policy to macroeconomic analysis and discussion. In the current economic situation, to do the research to know how the monetary policy to affect on the economy, in order to approach what is expected for the economy.Based on that, firstly, this paper clear up some concerning theory; Secondly, learn from the model of Cao Yongqin on1978-2005annual data, using six variable:the amount of industrial employment, the country’s total population, the government fiscal expenditure, fixed asset investment and GDP deflator index to enlarge the range of study to analysis the1978-2009data. The empirical analysis shows that:the response to monetary shocks in the first industry, the other two industries, followed by China’s monetary policy asymmetry industry. On this basis, this paper raises five recommendations:perfect credit policies, speeding up China’s market-oriented interest rate reform, promote enterprise reform to promote competition in the market, promote the development of capital markets and focus on the means of fiscal policy with the use of monetary policy.