The Research On Regional Differences For Chinese Monetary Policy Effects

Since30years of reform and opening up, our economy and society has madethe achievement of ever-changing, but at the same time, the level of development ofdifferent regions of China’s economic and social varies from one region to another.However, the larger difference of the level of economic development will inevitablylead to its financial development in the larger differences in the levels. China’snortheastern region have lagged far behind in the financial structure, financialaggregates and financial efficiency than China’s eastern coastal developed areas. Thephenomen is due to the economic and financial development of the economieswithin the larger difference, and certainly will lead to large differences of the effectof the implementation of the People’s Bank of China,which is considered to developa unified monetary policy between the different regions.China’s monetary policy operations, have been taken all the country,"a game ofchess" approaching in the management methods exactly the same. The final result ofthis approach is the unity of the central bank’s monetary policy implementationresults in the different regions of different effects.This conduction effect ofdifferences in China’s economy is relatively developed areas and economically lessdeveloped areas more significantly, the implementation of China’s central bankmonetary policy effects were shown a weakening trend in the Northeast area andMidwest place. This will not only lead to the monetary policy objective of China’scentral bank being ignored, but also the unbalanced economic and socialdevelopment between different regions of China are also an objective towiden.Besides, this imbalance of economic and social development will furtherenhance the the running costs of the common monetary policy of the Central Bank ofChina, further widening the effect of regional differences of China’s central bankmonetary policy implementation, thus forming a vicious circle.The effect of the implementation of China’s monetary policy is significantly being weakened,which is due to the existence of regional differences of the effect ofmonetary policy.It results in acclerating the imbalance of China’s regional economicdevelopment and the gap between rich and poor. Of course,to the China’s centralbank’s monetary policy effective implementation,it is really a major obstacle. Howto solve this monetary policy, regional differences in China’s monetarypolicy.Decision-making authority and monetary policy theory researchers are issuesof the common concern, which is the starting point for research in this article.Therefore, we select the less developed area-Jilin Province and the developed area-Zhejiang Province, as the representative, comparing and analyzing, hoping to find agap of economic growth and financial development in the two provinces.And thenexploring the common currency policy,which is different in the two provinces ofconduction and causes.The heap of fruits can be used to enhance the effects of theimplementation of monetary policy and provide the operating basis for the smoothrealization of the monetary policy.