Research On Regional Asymmetric Effect Of Monetary Policy In China

There have always been one of the most concerned problems of macroeconomists about how to make monetary policy and whether monetary policy is effective,and the research of monetary policy is related to the steady development of a country's macro-economy.Traditional macroeconomic theory holds that monetary policy is a general concept.Therefore,monetary policy authorities should be more consideration of total management,the whole macro-economic operation,and the implementation of a unified monetary policy in the formulation of monetary policy,instead of taking into account the specific regional factors and microeconomic differences between the main factors.The central bank has also adhered to this theory on the China's monetary policy all the time and more attention to the macroeconomic control,thus ignoring the regional economic development imbalance.However,with the development of economy and society,people gradually concern that the policy effect achieved by the unified monetary policy is quite divergent through the transmission of financial markets in different regions,that is,the regional asymmetry effect exists in our monetary policy.On the basis of summarizing the literatures on the regional effect of monetary policy,this paper expounds the theory on the optimal currency area,the monetary policy conduction mechanism,the regional effect of monetary policy and so on,which is the theoretical basis of this paper.The innovation of this paper is to divide our country into eight economic regions for research.By constructing VAR model to empirically test the regional asymmetric effect of monetary policy,this paper selects the monetary supply M2,GDP and consumer Price index as the representative variables to study the regional effect of monetary policy,Using ADF test,Granger causality test and cointegration test to test the variables,the impulse response function is used to analyze the shock reaction between variables.The results show that the asymmetric effect of monetary policy exists in our country.Then this paper explains the factors that affect the regional effectof monetary policy respectively,and why the regional effect of monetary policy exists by using theory with practice from the difference of regional economic development and regional financial development.Finally,from promoting the coordinated development of regional economy,promoting the coordinated development of regional finance,and moderately implementing three aspects of regional monetary policy,this paper puts forward reasonable suggestions to solve the asymmetric effect of monetary policy according to the various factors in the previous study,and minimizes the impact of regional development differences on the transmission of monetary policy in China,so that our monetary policy can play its due role.