Research On The Effectiveness Of Structural Monetary Policy In Alleviating The Financing Difficulties Of Small And Micro Enterprise

Since China has entered the new economic normal,in the face of structural imbalances and weakening momentum in the economic and financial fields,aggregate monetary policy has been caught in a dilemma,and structural monetary policy with targeted adjustment and differential treatment functions has emerged.Since 2013,China has created a variety of structural monetary policy tools,aiming to achieve capital infusion and precise drip-feeding to help the weak links and shortcomings in the process of economic development.This paper seeks to scientifically assess the effectiveness of different types of structural monetary policies in relieving the financing of micro and small enterprises,which are an important part of the real economy and have long been suffering from financing constraints.The research logic of this paper is as follows: First,we summarize the relevant literature on structural monetary policy,and review the background,objectives,rules and implementation status of typical tools of structural monetary policy in China.Then,we elaborate on the transmission channels of structural monetary policy in China from a theoretical perspective,and explain the effectiveness of the two types of policy tools in relieving the financing of MSMEs based on the characteristics of quantitative and price-based regulatory tools in China.The mechanism of the effect of these two types of policy tools on the financing of micro and small enterprises is explained.Afterwards,a two-way fixed-effects model is used to examine the effects of the combination of quantitative and price-based instruments in alleviating the financing difficulties of MSMEs from the perspectives of "quantity increase" and "price decrease".Finally,we examine the differences in the effects of the two types of policies based on the heterogeneous characteristics of micro and small enterprises from the perspectives of industry factor intensity,enterprise ownership,regional differences and age of enterprises.Based on the above analysis,the following conclusions are drawn: Firstly,structural monetary policy mainly alleviates the financing constraints of MSMEs through the credit targeting channel,the interest rate channel,the signal expectation channel and the risk-taking channel.Second,both quantitative and price-based structural monetary policies can increase the scale of credit for MSMEs and reduce financing costs.And the above findings still hold under a variety of robustness tests.Third,the heterogeneity analysis finds that,based on factor intensity,quantitative instruments do not have a relief effect on labour-intensive firms,while price-based instruments have a better effect on capital-and technology-intensive firms than labour-intensive firms in alleviating their financing difficulties.Based on the nature of property rights,quantitative instruments significantly alleviated the financing constraints of private MSMEs,while price-based instruments were less effective in alleviating credit ownership discrimination.Based on regional differences,both quantitative and price-based instruments fail to significantly increase the credit scale of MSMEs in western regions,while price-based instruments have a more comprehensive effect in alleviating the problem of expensive financing for MSMEs in different regions.Based on the age of enterprises,quantitative instruments are more effective in supporting young MSMEs,while price-based instruments are more effective in promoting mature MSMEs in terms of credit size.Accordingly,the following policy recommendations are made: Innovate quantitative tools,refine and expand the scope of quantitative tools.Smooth and optimise the interest rate transmission mechanism and strengthen the role of price tools in guiding interest rates.Improve the combination paradigm and coordination mechanism among policies.And effectively grasp the regulatory assessment mechanism and the frequency of policy operations.