Research On Asymmetry Of Regional Effect Of Monetary Policy In China

Inter-regional imbalance in the current economic situation, which could undermine the effectiveness of policy and hinder economic development. The rapid development of China’s economy, the gap between the developed countries step by step in the narrow, however, the status quo of China’s regional economic development is uneven but there are further deepen the problem. Based on the analysis of optimum currency theory, does not meet the criteria of optimal currency area. Therefore, under the unified monetary policy produces effects within regions of inconsistencies between. This not only reduces the effectiveness of monetary policy, and will hinder the economic development of our country in the long-term equilibrium. Through analysis and verification of the presence of asymmetry of this space, not only has important theoretical significance, but also of great practical significance. In the analysis of the status quo, while only identify the causes and problems, and to improve governance and targeted in order to promote good and fast development of China’s overall economy.Yangtze River Economic Belt, including 2 of 9 provinces and municipalities, located in China’s belly, across the eastern, central and western areas, which coordinated the development of China’s economic and social development has a significant meaning. This paper from the ten provinces of the Yangtze River Economic Belt contains a paper discusses a unified monetary policy for the upper reaches of the Yangtze River economic belt, midstream, downstream of the three regions, including the scope and time lag actual economic variables such as output and prices demonstrate its length regional effects of asymmetry exists, and attempts to analyze the causes and countermeasures to promote the integration of the Yangtze River economic Belt goal has important practical significance and economic significance.The theoretical part of this paper on monetary policy neutral and non-neutral on the theoretical analysis, from a theoretical point of view of the differences between the effects of monetary policy problem. Then in the analysis of the standard Mundell’s optimum currency area, come to our country does not comply with the standard theory of optimal currency area, therefore, in accordance with the best idea of monetary union, should be implemented for different intra-regional differences monetary policy. Finally, the theoretical analysis of the monetary transmission mechanism, which is to explain the reasons for the existence of regional differences in the effect of monetary policy in China. After combing the theory of China’s Yangtze River Economic Belt through were divided into three regions, using annual data for further empirical testing. Conclusions show that China’s Yangtze River economic belt inside, there are also inconsistent monetary policy effects, compared with the three provinces in eastern Midwest maximum response. In addition, each of the three regions selected three representative interior provinces the same empirical analysis, under the impact of money supply, there are also regional differences in output between provinces. Then analyze the reasons for the regional differences in the effectiveness of our existence and given the appropriate policy recommendations in a unified monetary policy to promote China’s overall national economic differences balanced development and regional economic development and coordination of narrowing.