Correlation Research Of Chinese Monetary Policy And The Economic Level Of Manufacturing

Monetary policy is an important content of the macroeconomic impact of themicro-economic research on monetary policy is inseparable from the discussion of itspractical effect. In the process of running the current microeconomic China, themanufacturing boom is an important source of China’s economic revitalization ofmanufacturing and manufacturing association study has profound significance.Theoretically, it is possible to get in-depth discussion of monetary policy in the contextof China’s special conditions. The effect of the implementation of the macro-economyand manufacturing level of monetary policy linked to domestic monetary policyconducive to research and manufacturing boom in the degree of association studies.Monetary policy on the real, this study can be used to analyze the results of thequantitative analysis of national macroeconomic policies, microeconomic impact ofmonetary policy for the manufacturing sector and are subject to quantify the extent ofthe impact reference value, based on manufacturing sentiment in favor of direction,can revitalize the manufacturing sector will certainly help.Research methods, this paper used the methods of qualitative analysis andquantitative analysis. Qualitative analysis, on the basis of theoretical research andsummarize the historical development of the existing monetary policy and thedevelopment of the manufacturing industry in China’s national conditions and analyzesthe way of manufacturing and related currencies. This includes the feedback effect ofmonetary policy on the manufacturing sector and the manufacturing sector conductionof monetary policy-making. Quantitative analysis, the paper uses a vectorautoregression (VAR) model and impulse response function and variancedecomposition method to analyze the results of theoretical analysis and empirical verification conclusion. By order of this writing, the empirical methods used includeunit root test, Granger causality test, correlation analysis test, Johansen cointegrationtest, impulse response, variance decomposition analysis. Empirical results show thatChina’s monetary policy and the relevance of the manufacturing economy is strong,but there is more or less a problem in the course of their channels of mutual influence.Non-market interest rates, financial development channel is imperfect, irrationalallocation of resources, the manufacturing base of the instability associated with themanufacturing boom of monetary policy tightness adversely affected.In the end, this paper on the environment and challenges China’s manufacturingindustry has been described in conjunction with the results of the empirical analysisconducted on how to revive China’s manufacturing policy recommendations.Innovation of this paper is mainly reflected in the manufacturing sector of theeconomy and monetary policy related research current empirical analysis, VAR modelruns eventually built a good, capable of China’s current monetary policy andmanufacturing sentiment reflected the degree of association, which China underdevelopment to revitalize the manufacturing sector has a certain reference value.