Effect Of China S Monetary Policy Research Of Regional Differences

As a large developing country in a period of economic transition, China’seconomic and financial development has big gap among different regions.The unifiedmonetary policy through the regional financial institutions and financial market,transfer to the enterprises and residents,then make different feedback, highly unifiedmonetary policy may not produce satisfactory policy effect, even lead to theimbalance of regional development of negative effect, this would cause economicstructural problems.This article will divide Provincial administrative units into three regions.Firstlyverify the existence of monetary policy regional effect and the form of the differenceswith the quarterly data of the first quarter of2005to the first quarter of2012;thenanalyze the reasons that cause such regional differences along the monetary policytransmission mechanism;finally, make policy recommendations based on the analysisand empirical conclusions.This article build VAR model and dynamic panel datamodel,then use the impulse response and SYS-GMM estimation to research regionaleffects of monetary policy in China.This paper found that China’s monetary policy are roughly the same in the totaloutput, but the per capita consumption, investment in fixed assets, the influence ofprice level have obviously regional effect, this regional effect come out throughsensitivity, extent of reaction, time delay and other forms. Depending the theories ofmonetary policy conduction mechanism,we on researching the reasons of regionaleffects with the method of comparative analysis.This paper attributes the regionaleffects of monetary policy to the regional consumption tendencies, the regionalfinancial development level, enterprise dimensions and properties of differentindustrial structure, and inflation expectations. Finally, put forward the correspondingpolicy suggestions on the basis of analysis and empirical conclusion.