Research On The Industry Asymmetry Of China's Monetary Policy

Since the reform and opening up initiated four decades ago,China's economy has maintained rapid growth for a long period of time and has accumulated considerable economic output.Meanwhile,the imbalance in economic structure has also emerged increasingly conspicuous and pronged.Of China's two major macroeconomic regulation and control measures,monetary policy plays a vital role in promoting supply-side reform and economic restructuring and upgrading.However,China's long-term "one size fits all" monetary policy has exerted different effects on various economic sectors,which has hindered the further adjustment of monetary policy on its economic structure.As such,this paper studies the asymmetric effects of monetary policy on the manufacturing industry,with an aim to reveal the relationship between the implementation effects of monetary policy and the characteristics of various industries,and provide theoretical suggestions for the formulation and implementation of monetary policy.The paper firstly makes a literature review on the existence of industry asymmetric effects of monetary policy and the reasons behind.Next,based on the theory of currency non-neutralism and the exogenous theory of money supply,it confirms the validity theory of monetary policy and analyzes the theoretical mechanism of monetary policy to cause industry asymmetric effects.Secondly,the paper reviews China's various monetary policies from 1984 to now,and summarizes the development status of China's manufacturing industry.On the above grounds,it verifies that the monetary policy indeed has asymmetric effects on different industries from the empirical point of view,and studies the reasons behind by analyzing the relationship between monetary policy and manufacturing structure.Finally,through the analysis of the empirical results,corresponding countermeasures and suggestions are put forward.The paper concludes that:There is indeed an industry asymmetry effect in monetary policy.the monetary policy has more sensitive effects on industries with lower leverage ratio,smaller average asset size,yet higher current ratio,financial expense ratio and capital-intensity.Implementing monetary policy can neither significantly increase the proportion of technology-intensive industries in total manufacturing output,nor effectively improve the manufacturing structure.At last,the paper gives corresponding policy suggestions from both the micro and macro aspects.