Theoretical And Empirical Analysis Of The Effect Of Differences In The Monetary Policy Area

Traditional points referred that the monetary policy should have consistency results. This point ignores the non-equilibrium of the economy in the same country (currency areas). At present, the economic disparities areas are growing between the eastern area, central area and western area. Neglecting the imbalanced domestic economic development of all regions and implementing a unified monetary policy may increase regional economic development imbalances.From regional economic development perspective, paper studied and analysist the Theory of Optimal Currency Area, New Keynesian incomplete information model, the point after the Keynesian. The effects of monetary policy regional differences exist in theory.With the theoretical analysis, constructing VAR model, the paper has carried empirical research on asymmetrically regional effect of China monetary policy from the regional price effects, regional investment effects and the monetary policy transmission channels regional effects. The results showed that the money supply did different impacts on different areas. Price effects of the monetary policy and the investment effects of the monetary policy exist in different areas in our country. The empirical research of the monetary policy transmission channels regional effect showed that the transmission channels of the interest rate, credit and asset price are smoother in eastern region. The credit channel are smoother in central and western region, however, the interest rate channel, credit and asset price channel are not very good. The paper analysis the reasons for the exist of the effects of monetary policy regional differences from the industrial structure, credit difference, asset situation in different areas.The end of the paper gave some suggestion that we should study the experiences of the foreign countries and implement different regional differentiation of monetary policy in our country against the status of China's monetary policy . These measures include: to use the different monetary policy tools in different area , to set the effect of monetary policy regulation intermediate goal of regional differentiation, to improve the regional transmission mechanism of monetary policy, to reform the current system of the PBC branch in the structure of the system, to construct regional economic and financial information monitoring system.