Study On Regional Effects And Regulation Of Monetary Policy

Traditional monetary policy theory considers that monetary policy is a total concept. The formulation and implementation of monetary policy is aimed at the overall regional or national situation, which is the unity of monetary policy. But the birth and development of the European currency began to reflect the traditional theory of some of the problems, and the concept of the regional effect of monetary policy has become more and more attention by many countries. Due to the regional political, economic, cultural and historical aspects of reason, unified monetary policy in different regions will have different policy effect,which cause inconsistencies of monetary policy goal in the regional and then form a greater gap which is also exist. And which even cause the failure of monetary policy.In terms of research object, the main research is the study of the European curr-ency abroad. There are few research on regional effects of monetary policy in a coun-try. But for some powers, such as China, regional effects of monetary policy research is necessary. Our country is a large country. Being the difference of geography, history and humanities, there must exist difference in the economics, finance and so on. Our country monetary policy goal is to keep stability of currency and thereby promote ec-onomic growth. Under the current monetary policy framework, the original imbalance in regional economic development under the effect of the monetary policy effect may be more serious.Research on regional effect of monetary policy in China started late. But in recent years, many scholars research still has certain value. Research scope has researched the regional effect of monetary policy from macroscopic to microcosmic economic body behavior to monetary policy from multiple aspects, such as industrial structure to the financial environment. And most of them put the western monetary policy transmission channels theory as the starting point, and using the metrological analysis methods to analyze Chinese main monetary policy transmission channels. Then though the research on the difference of the policy transmission channels, to find the regional effect of monetary policy mechanism, the causes and influencing factors.In terms of the current study results, due to the sample data processing method, time and different econometric model exist difference, the result is also exist difference. But the main point agrees that the credit channel of monetary policy transmission is the main channel. This body part first analyses the nature of the monetary policy in our country, and thinks that Chinese monetary policy have both endogenous and exogenous. Then, from the perspective of monetary policy framework of our country, we analyze the evolution of China’s monetary policy transmission channels. With the development of rate marketization on interest, the perfection of financial system and financial regulation system, interest rate channel in some more developed regions financial environment has begun to highlight role in monetary policy transmission. So when analysis the producing reasons of regional effects of monetary policy, the paper mainly analyzes the regional differences in financial markets, and these differences will lead to its role in current monetary policy tools of consistency, which can lead to regional differences of monetary policy transmission channels.Then, this paper make an empirical analysis of the possbile reasons for this phenomenon. Choosing the M2as dependent variable, we research the influence of changes of M2to the GDP and the financial institutions loans in various provinces. Through the selection of the data of various provinces and citides nationwide and using the VAR model and impulse response function,we makes empirical analysis The analysis results show that the effect of monetary policy has the difference in differenct regionals, and also has the influnece to ouput and finacial institutions loan. The difference among the regional economic financing ability,which is caused by regional differences of monetary market and capital market development of regional economy,is a important reason to the inconsistencies of monetary policy effect,along with the advancement of marketization of interest rate, financial market development will further influence the consistency of the monetary policy effect. Finally the paper puts forward some policy suggestions for the regional effect of monetary policy in china. The study in this paper is the idea of starting from the monetary policy transmission mechanism of monetary policy in China under the framework of the system. And it also researches the regional effect of monetary policy. Therefore, in the current monetary policy framework, this paper puts forward policy recommendations from the following three aspects:optimizing the transmission environment of monetary policy, optimizing the transmission channels of monetary policy and expanding the coverage of the monetary policy.