The Research On Asymmetrical Effect Of China’s Monetary Policy

The research on asymmetric effect of monetary policy is based on the researchon validity of monetary policy.Therefore,if you want to study the asymmetric effect ofmonetary policy,you must recognize the validity of monetary policy. The purpose ofthe research on asymmetric effect of monetary policy is to see if whether the effect ofmonetary policy is symmetric or not when the central bank using one specifiedmonetary policy tool in the same degree while in the opposite direction.When theeffect of monetary policy is symmetric,the effect of monetary policy is considered tobe symmetric,otherwise the effect of monetary policy is considered to be asymmetric.The research on asymmetric effect of monetary policy on only insist the choose ofmonetary policy direction,but also insist the choose of monetary policydegree,therefore,this research is very significant,which can offer help for ourmonetary policy operation.In this paper，we first assemble relevant research on asymmetric effect ofmonetary policy both at home and abroad,introduce relevant basictheories.secondly,we reviewed China’s monetary policy operation from1984to2011.And then we use China’s quarterly date of MO、M1、M2、GDP、CPI from1994to2011.And then，using VAR model to finish the empirical analysis，in order toexplore wether we have the asymmetric effect of monetary policy in our country.Theresults of the empirical study shows that the effect of China’s monetary policy isasymmetric,The impact of tight monetary policy on CPI and GDP is bigger than theeffect of expansionary monetary policy.At the end,the paper concludes the reasons forthe asymmetric effect of monetary policy based on the existing theories and the latesteconomic situation in China.In the end，we analyze the reason for asymmetric effectof monetary policy in our country,and raise some policy recommendations.