| In September2008, the United States sub-loan crisis led in a financial crisis over the world.Every country was suffered from the reduction in stock market index, decrease of exportation andthe closing of factories,a phenomenon that the number of unemployed people rise sharply.In orderto solve financial crisis, different country has taken different measures to avoid this shock. Koreatook a large financial aid. Holland and England put a lot of money in the market. America issuedmore dollars to expand the circulation of dollars in the market and made zero rates in the bankwhich before buying long bond. China has taken the same measure as American did.With increaseon loan, economy was growth for constant money put in the market. Monetary policy played animportant role to solve the crisis as one of the main methods of the national macroeconomicregulation and control.This article will research on one question that how monetary policy willinfluence financial crisis.This passage will introduce monetary policy in China and America by comparing econometricdata using econometric model,analyzing difference in effectiveness. We will learn a lesson from theresearch which will help our country take next step in national construction.The whole passage is divided into three parts. First part of essay contains three chapters,mainly introduces the background, meaning and theory of monetary policy and gives a conceptualintroduction of VAR model. Second part consisted of next two chapters is most important in thearticle. Monetary policies in America and China are introduced respectively in the forth chapter, andempirical analysis in GDP and money supply in fifth chapter by comparing effectiveness ofmonetary policy using VAR model. Third part is a conclusion that what the monetary policy inChina is, with analysis difference in effectiveness between two countries and put forward somemeasures in monetary policy to construct our country. |
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