The Empirical Research On Regional Difference Effects Of Monetary Policy In China

Monetary policy,which is set by the government in order to realize a certain macro-economic goals,it is the basic guidelines and rules about the organization and management of money supply and currency circulation.In the long history of Chinese revolution,because of the different regions have different resources and geographical advantages, it makes different regions have different level of economic and financial development. It gradually formed the four major economical regions which have obvious disparity in economic development level ,and the four major economical regions refers to eastern developed area,middle and northeastern undeveloped area,western underdeveloped area. If central bank want to make the monetary policy, it often take the developed area's financial circumstance as the reference, and the same monetary policy in different regions may have different effect. This kind of differentiated will bring the serious consequence. Since the Fourth Plenary Session of the Sixteenth Central Committee put a harmonious socialist society and material civilization, political civilization and spiritual civilization in a coordinate prominent position, and now the most inharmonious factors is the imbalance of regional development. Therefore, China's regional differentiation of monetary policy research has very important practical significance. So, the study on regional difference effects of monetary policy in China has a very important practical significance.We analyses the problem in this article, and the scope of this article is eastern, middle, western and northeastern regions. This article is constructing VAR Model,reseaching in the same monetary policy have or not have different effect in different regions, and analyses the influence factor. Finally, based on these factors try to make Policy recommendations to help reduce the regional effects of monetary policy in China.The article includes six chapters. The first chapters introduces the environment, purpose and significance of the article.The second chapters are theory foundation which includes the theory of optimum currency areas and the monetary policy transmission. The third chapter makes empirical examines on regional difference effects of Monetary Policy in China, by using Vector Auto-Regressive model and some econometric instruments. The fourth chapter researches the influence factor.The fifth chapter brings forward some countermeasures and advices. The sixth chapter is conclusion and envisage.