A Research On Asymmetric Effects Of Chinese Monetary Policy

The effect of monetary policy on output has been the hot topic for economists and policymakers for many years.This article will focus on the monetary shocks on economic growth.With the help of the nonlinear econometrics research, this article separate the monetaryshocks and put them STAR model transfer to estimated to find some conclusion. This paperis arranged as follows:In the first part, the asymmetric effects of monetary policy theory are briefly introducedand evaluated.This part described the expectation theory, the credit restraint theory and stickyprice theory.By pointing out the advantages and disadvantages of these three kinds of theories,I draws out the theoretical analysis frame at the end of this part.Then, prospect theory andrelated concepts and analysis methods are briefly described.By using these concepts andmethods,I finally obtains the theoretical deduction.The second part mainly focus on our monetary policy practice.The first section is thefactual description since reforming and opening policy was taken.then,through analyzing thechange of the deposit reserve ratio and interest rate,I make some further study on themonetary policy practice of china.The third part is the empirical analysis part. By estimating the money supply equationisolated from different monetary shock, which is put into the STAR model to carry on theanalysis, the paper gets some conclusions and confirmed the previously proposed theory.The fourth part is the conclusion.this paper puts forward three suggestions to involvedauthorities,whose purpose is to continuously improve scientific-ness and effectiveness ofmoney regulation.