The Central Bank's Monetary Policy Operation The Effect Of Non-symmetry Of Empirical Research

In recent years, the research on both the symmetry and asymmetry of the effect of monetary policy has raised great concern abroad in the domain of finance. Evidence from research shows that the effects of contractionary and expansionary monetary policy differ from each other significantly when coping with the overheated and recessionary economy, respectively; besides, the distinctions of the effects and features of the monetary policies that are used in different countries and regions are also obvious. Through the flexible approach of Hamilton (2001), Kim D.H. (2002) analyses the monetary policy of U.S. The result indicated the significant nonlinearity of the American monetary policy before 1979, that is, asymmetric effect, while there is little such evidence for the subsequent period. By contrast, opposite results have been found by Bruinshoofd and Candelon(2004), test the effectiveness of monetary policy in some European countries using STR model and LM statistics. The asymmetric effects of monetary policy in China have been proved in many scholars' research. But it's not enough. In order to improve the controllability, we must find break points of the effects of the monetary policy, which can be used as the reference points to measure the present condition of our policy and offer the evidence of policy adjustment.STR model is a non-linear method widely used in the break point research of government policy, which gives us a continuous and smooth function to describe the effects of an economy variable to the economic system, when it fluctuates beyond some break point. STR model, as a complete system, consists of non-linearity test, transition function estimation and non-linear regression model estimation, where the estimation of the smooth transition function is the difficulty in the whole model, and...