Research On The Effect Of Monetary Policy To Promote Economic Structural Adjustment In China

After nearly four decades of rapid growth, China’s economy has made remarkable achievements. The total economy has been ranked second in the world, per capita GDP has also entered the middle-income countries. Though extraordinary achievements has made, we also need to see that the economic growth rate has been falling for five consecutive years. Excess capacity, resources and environment pressure, insufficient effective demand has been frequently mentioned, indicating that China’s economy has entered a usual different "new normal." We have found that rapid growth in the accumulated contradictions have become more prominent, more and more severe distortions in economic structures. Thus, effectively change the mode of economic development and economic strategic restructuring have been China’s economy theme. As the core of modern economy, finance are closely related to the real economy. Monetary policy as an important means of monetary policy on economic restructuring has also had a profound impact. Therefore, this article attempts to empirical study of monetary policy to promote economic structural adjustment results based on historical data.This paper summarizes the results of previous studies, and on this basis, forms a research framework; further elaborated theories on economic structure and monetary policy, discusses the impact of the economic structure of the monetary policy mechanism; then reviewed our economy restructuring course and monetary policy changes. In the second half sections of this paper, we selected indicators rationalization of industrial structure, the three dimensions of Industrial Structure indicators and indicators of demand for high-class structure representative of the economic structure, selected interest rates, exchange rates and the size of credit on behalf of monetary policy mechanism. In this paper, the relevant data in 31 provinces were constructed fixed effect panel model empirical analysis, on the basis of previous studies made on extending conclusions. The empirical results show as follows. (1) In time the scope of this study, namely 2000--2013 years, rising interest rates have a positive impact on different samples of Industrial Structure; also has a positive impact on the rationalization of the industrial structure and demand structure of high-class, but they are not in coastal areas significant. (2) The exchange rate is conducive to the development of the industrial structure to high grade, attributed the difference between the industry and the different factor intensity of the business sector and non-trade sector; but the exchange rate on the rationalization of the industrial structure is negative, which is the third industry labor the extent of absorption and stage of economic development of China’s relevant; the exchange rate to enhance demand for high-class structure has three samples positive impact. (3) Rising credit scale has a positive impact on the industrial structure adjustment, due to the inherent differences in the mechanism, which is not in contradiction with the impact of interest rates; the impact on credit demand Structure Upgrade generally not significant. Finally, this paper relevant policy recommendations.