Research On The Regional Effects Of China's Monetary Policy

How does monetary policy play a role in regional economic development and how it affects the development of regional economy and how much impact it has been the forefront of theoretical research in regional economics.Since the reform and opening up,with the continuous growth of China's financial market,the financial system on the real economy continue to strengthen the penetration of monetary policy control on the regional economy is growing.The extent and speed of response to monetary policy regulation in a region often affect economic indicators such as economic development,price level and employment situation in the region.Depth study of the impact of monetary policy on regional economic development,on the one hand for the development of macroeconomic stability,coordinated development of regional economy to provide useful policy recommendations,on the other hand is to ensure that the central bank monetary policy effectiveness,rich structural policy controlbasis.In the face of regional economic development level and the difference between the financial market structure,the unified central bank monetary policy will have different regulatory effects in different regions.First of all,in the face of the same monetary policy,the market sensitivity of different regions is not the same,in the higher level of economic development,financial markets more perfect areas are often a slight adjustment of monetary policy can produce a huge market response.And the opposite area in terms of size or speed,the market reaction will be smaller and slower.Secondly,in the face of the same monetary policy,the economic cycle of different regions is not the same.Development of the region is often an industry has entered a period of maturity or even recession,and some other regions of these industries have just entered the development period.Third,the face of the same monetary policy-making institutions,different regions of the influence and voice is not the same.Economically large regions are more likely to be considered in the process of monetary policy making,and this tendency of monetary policy tends to have a negative impact on areas with small economies.With China's economy into the new normal,economic growth into the high-speed development stage,the Chinese economy has a series of structural changes.Although China's economic growth rate of decline,but the quality of economic development continues to increase.From the regional point of view,China's eastern coastal areas are focusing on industrial restructuring,from the past processing,labor-intensive industries to independent research and development of knowledge-intensive industries.The central and western regions are ushering in the critical stage of the overall rise of the market economy.On the one hand,relying on the vigorous development of the consumer market to develop the regional special industries,on the other hand to undertake the eastern developed areas to transfer part of the traditional industries.In this environment,to ensure that the effectiveness of monetary policy,integrity,consistency is an important goal of the current macro-control.However,due to the resource endowments,economic development level and financial market structure in China,there are significant regional effects of monetary policy under the unified monetary policy.This situation on the one hand aggravated the non-equilibrium of regional economic development,on the other hand also makes the implementation of monetary policy effect is affected,the policy formulation process becomes more difficult,seriously affect the allocation of capital elements efficiency.Therefore,it is an important research direction to study the mechanism,causes and governance of monetary policy regional effect in China.This paper consists of seven chapters divided into four parts.The first part includes the first chapter and the second chapter,for the introduction and theoretical basis of this article.First of all,through the analysis of the existing monetary policy regional effects of the relevant literature,summed up the status quo and the existing problems and on this basis,put forward the research results of this article.And then provides theoretical support and methodological sources for the research and analysis of this paper by combing the basic theory of monetary policy,the theory of asymmetric monetary policy,the regional effect theory of monetary policy and the coordinated development of regional economy.The second part is the third chapter,for the monetary policy of regional economic development of the preliminary analysis.First of all,by combing the evolution of monetary policy since the opening and the regional economic development,the traditional monetary policy intensified the regional economic development of the situation and methods of descriptive analysis.By analyzing the historical reasons of the current regional economic development situation and the historical reasons and specialities of the transmission mechanism and mechanism of China's monetary policy.Based on this,this paper analyzes the monetary policy factors in the regional economic imbalance in China's special economic environment.It is concluded that there are still significant regional effects of monetary policy in China.The third part includes chapter four,chapter five and chapter six,and analyzes the existence and influence mechanism of regional economic development which affects the monetary policy.In the fourth chapter,based on the evaluation criteria of the optimal currency area in the traditional optimal currency area theory,this paper discusses the suitability of the Chinese region to meet the optimal monetary zone and the basis of the actual situation in China.Whether the Chinese and Western regions meet the optimal currency area standards for descriptive analysis.Then,this paper uses the SVAR model to analyze the sensitivity and reflection degree of the output index and the price index to the impact of the quantitative monetary policy index and the price monetary policy index in the eastern,central and western regions,and further validate the regional effect of the monetary policy in China analysis.The fifth chapter and the sixth chapter first classify the monetary policy indicators according to the different monetary policy instruments according to the central bank.Based on the theory of monetary policy transmission channel,analyze the characteristics of China's financial system in monetary policy transmission,use the SVAR model to analyze the regional economic production Indicators and regional economic price level indicators of quantitative,price-based monetary policy tool to respond to the sensitivity and reflect the degree.Further through the theoretical analysis and discussion of structural monetary policy tools in the regulation of regional economic imbalances in the mechanism and role.It is concluded that the effect of interest rate on regional economy is not obvious from the perspective of price-based monetary policy.In contrast,the reaction in the eastern part of China is basically the same,the economic growth reaction in the western region is weaker and the sensitivity of industrial transformation is stronger.The impact of exchange rate on regional economic growth is not obvious,relatively speaking,the eastern part of the economic growth is more significant,the central and western regions are basically the same,but the regional economic openness and exchange rate policy is positively related to the opening of the eastern part of the exchange rate by the basic and consistent For the western region twice,can be considered openness difference is one of the factors.At the same time,the price-based monetary policy has a limited impact on regional economic differences,and the price control mechanism of money supply needs to be improved.From the quantitative monetary policy,economic growth in the eastern and central regions is more sensitive to changes in the money supply,while the western region is affected more deeply.The industrial transformation in the eastern region is more sensitive to the change in the money supply,followed by the middle and the west.The sensitivity of regional economic growth to credit policy is basically the same,but the influence of the central part is deeper,followed by the east and west.The size of enterprises in each region is significantly negatively correlated with the credit policy,in which the degree of eastern influence is greater than that of the central part.Can be considered that the size of the enterprise is one of the determinants of the difference.At the same time,the impact of quantitative monetary policy on the regional economy was significantly higher than the price-based monetary policy,China's current monetary policy control is mainly concentrated in the quantitative adjustment.The fourth part is the seventh chapter,for the policy recommendations part,through a comprehensive analysis of China's monetary policy regional effect of the formation of economic reasons and policy reasons,the coordinated development of China's regional economic policy based on monetary policy recommendations.Proposed to promote the coordinated development of regional finance,give full play to structural control tools,strengthen the market allocation of resources and other policy recommendations.