The Impact Of China's Regional Differentia On Monetary Policies

As one of the most widely used macroeconomic policies, monetary policy has played a very crucial role in economic growth. The outcome of introducing the monetary policy, however, is not always satisfactory due to quite a lot of affecting factors. This essay analyzes the five main factors that contribute to the effectiveness of the monetary policies which are the real income level of the consumers, the money market, financial intermediaries, enterprises and the personal investors. The interaction between the five factors and the monetary policy tools are discussed in details as well. After contrasting the different results of the monetary policy tools in the three main districts which are the east, the middle and the western of China, Some insights on the approaches to improve the effectiveness of the monetary policies are shown together with author's suggestions for the government's reference.