Research On Regional Asymmetric Effect Of China’s Monetary Policy

In optimal currency area, a unified monetary policy has a consistency of effect.However, there is a basic fact that the single currency area is not necessarily the optimalcurrency area. Pathway to the central bank’s monetary policy intentions must pass specificpolicy reflected the monetary policy transmission mechanism of the single currency region,the difference will be the formation of regional effects of monetary policy has an importantimpact. China has a vast territory, and there are significant regional differences in the levelof development of the financial and economic objective, therefore, the total unifiedmonetary policy implemented by the central bank will lead the regional embodies themacroeconomic indicators of economic growth, employment, and price level differentpolicies. Interest rate transmission mechanism of monetary policy transmission mechanismcan be divided into specific bank credit transmission mechanism, the balance conductionmechanisms and asset price transmission mechanism, imperfect credit system in China dueto the transition period, the stylized facts of direct financing market is underdeveloped inthe banking system plays an irreplaceable role in the capital allocation of the whole society,enterprises mainly through indirect financing to obtain the funds needed for investment,the bank credit conduction channels become the main channel of monetary policytransmission. Based on the above judgment, the paper argues that the bank financialinstitutions in the region lead to the regional effects of monetary policy in China mainlydue to differences in the ability of credit providers. Therefore, in this article from the angleof the bank credit conduction channels combined with theoretical and practical analysis ofregional asymmetric effect of monetary policy in China.Above background and ideas, firstly combed the existing theory, then analyzed theexistence of the regional effects of monetary policy from the angle of bank credit channel,on the foundation, selected SVAR measurement model, through pulse correspondingly analyzing and variance decompositionfrom the bank credit channel empirically test theregional effects of monetary policy of eight integrated economic zone, the empirical resultsshow that after the implementation of a unified monetary policy of the Central Bank, theeight comprehensive economic zones show significant regional asymmetric effect,analyzedthe asymmetry causes of the regional effects of monetary policy in China from theregional differences of the bank financial institutions, finally concluded the research andmake policy recommendations.