The Study Of Industrial Structure Effects Of Monetary Policy In China

After more than30years’ reform and opening up, China’s economic development maderemarkable achievements, but there have been many problems. Monetary policy is an important toolfor state regulation macroeconomic performance, the study of the industrial structure effects ofmonetary policy not only is able to deepen our understanding and awareness of it in theory, but alsoprovide a scientific basis for the government’s decision-making.The formation mechanism of the industrial structure effect of monetary policy includes thetransmission mechanism of monetary policy and the supply and demand mechanism. Influencingfactors include the rate of return on investment, factor intensity, the income elasticity of demandetc.For our country’s monetary policy, from the perspective of the influence sphere, credittransmission mechanism is effective for primary and secondary industries, and the effect is different;interest rate transmission mechanism is valid only for the tertiary industries, exchange ratetransmission mechanism is valid only for the primary industry. From the perspective of the effects，interest rate transmission mechanism is relatively strongest，exchange rate transmission mechanismis relatively weakest，Credit transmission mechanism is in the middle.The regulatory body should give full play to the role of the credit policy to support the primaryand tertiary industries. At the same time, starting from the interest rate transmission mechanism,adopt preferential interest rate policy to promote the rationalization of the industrial structure inShanxi Province.