Study On Causes Of Regional Impact Of Monetary Policy Credit Transmission

Study on monetary policy is a popular topic in the broader economy,however the key point of the study of monetary policy is about the validity and the conduction mechanism.At the very start,the scholars have carried on research based on the perspective of total,considered unified monetary policy adjustment is same.But they ignored of the difference effect of monetary policy in different area.With the deepening of study on the differences of the effect of monetary policy.Scholars have found that the transmission effects of monetary policy has obvious difference in different regions.And this often leads to a distorted and weakened the effect of monetary policy.Therefore it's significant to focus on regional effects of monetary policy to carry out researchSince China has a vast territory,regional characteristics are different among provinces.The way simply divided our country into several big economic zone,ignores the difference among the provinces.Especially from the administrative and legal point of view,the level of administrative management and legal environment difference between every provinces is more likely to be ignored.Because of China's financial system is still dominated by indirect financing,Monetary policy is primarily conducted through the credit channel is the academic mainstream point of view.Therefore it is meaningful to choose the panel data of 30 provinces in China from 1998 to 2013 as a sample,proved that the regional effects of China's monetary policy credit conduction does exist from the provincial perspective.Of course,proof the regional effect of monetary policy is not enough,further study of the formation factors and the mechanism behind the area effect is linchpin.This will help to improve the tools of monetary policy recommendations.Through the study,industrial structure,enterprise structure,the structure of the banking and government administrative management level and the level of the legal environment construction research,is considered to be the cause of the five main reasons for the formation of the regional effects of monetary policy.Finally according to the five factors of the formation of regional effects,related suggestions on the central bank's monetary policy tools as well as the improvement of local government's economic development and the construction of administrative legal system are put award.