The Theoretical And Empirical Analysis On The Application Of Extended Taylor's Rule System In China

The Taylor rule of the non-linear regime transfer has some differences in the applicability of the Chinese market economy under two different research methods containing smooth transition zone transfer model and regional transfer based on the Markov chain,The difference is manifested as:smooth conversion of the transfer mechanism of the transfer system is man-made,is a prerequisite zone conversion,and Markov chain transfer is based on the data itself may exist in the state of the transition state By the model itself according to the performance of the data to choose the conversion of the district system.Compared with the traditional linear Taylor system,both of which have made a breakthrough in the limitations of the study of linear Taylor rules-The design of the coefficient parameters in the model is improved,and the influence of the model parameters itself is also given.Compared with the linear model,the response of the short-term interest rate to the inflation in the non-linear model is smaller than that of the linear model(0.05)in the stationary stage,both in the smooth transition model and the Markov area transfer model.In the condition,the asymmetry of the central bank policy loss function is obvious,and the degree of short-term interest rate reaction becomes more and more obvious,which is significantly larger than the constant value under the linear condition(0.05).In view of the applicability of the extended Taylor system,it is necessary to focus on the reform and construction of the financial market system and the financial system,which are the basis of the market of the interest rate regulation and the supporting system.In the process of policy formulation and implementation,the central bank can not fully formulate the optimal monetary policy based on the actual operation of the domestic currency operating environment,and only ensure that the monetary policy of the domestic monetary policy is the same as the monetary policy.The adverse effects of other factors on policy effectiveness are minimized in the implementation of monetary policy.China's monetary policy on the effectiveness of the implementation of the policy has smaller interference affected by the fiscal policy.