Asymmetric Industrial Effects Of Monetary Policy In China

At present, Monetary Policy is the primary means of macroeconomic regulation,which is undertaking a series of historical tasks, such as starting domestic demand,promoting economic development, and upgrading economic restructuration. In themeanwhile, the unified Monetary Policy our country conducted meets the problemthat, since there is no concern about the impact of Monetary P olicy in differentindustries, excessive fluctuation, or even unbalance would occur in some industrieswhich are sensitive to the adjustment of policy.This paper presents aggregate and industry-level evidence in order to suggestthat monetary policy produces asymmetric industy effects through monetary policytransmission channels. Monetary Policy should be regulated according to the responsedirection of the industry-related effect so as to keep the validity of Monetary Policyand lead the Chinese economy development to its total balance and prosperity.Through establishing Monetary Policy asymmetric theoretical model, as well asanalyzing the internal mechanism of the sectoral effects of Monetary Policy, thispaper analyzes the impacts of Industry Effect on several key factors, ranging from theinterest rate channel, the narrow bank credit channels, broad credit channel banks tofinancial asset price channel. And then we make a detailed theoretical analysis toanalyze factors that influence the sectoral effects of Monetary Policy, such as capital-intensive of the industry, industrial-scale characteristics of the industry, theproportion of state-owned asset-liability ratio, asset structure, liquidity asset turnoverand market competition and other factors on Monetary Policy effect in the industry.Combining the theoretical and empirical analysis, the article puts forward aseries of measures to perfect the Monetary Policy development in China, such as,improve the transmission mechanism of the sectoral effects of Monetary Policy,develop the Monetary Policy to adapt to industry characteristics, strengthencoordination between Monetary Policy and other policies.