| The aim of China’s monetary policy is to maintain the stability of the value of currency and thereby promote economic growth. Since the2008global financial crisis, the central bank use monetary policy tools more frequently in order to stabilize prices and promote economic growth. From January2008to December2012, the central bank adjust deposit reserve ratio24times, accounting for60%of the number of adjustments since the deposit reserve ratio set in1984. In addition, the central bank also increased the frequency of use of the interest rate and open market operations. Although monetary policy is an important tool of macroeconomic regulation and control, but the presence of the asymmetry of monetary policy affects the effects of monetary policy, therefore it’s necessary to research the asymmetry of monetary policy.Firstly, this paper elaborates the correlation theory of conduction mechanism of mone-tary policy and the price conduction mechanism of monetary policy of China and the U.S., then analyzes the principle how the asymmetry of monetary policy produce, and compare the conduction mechanism of monetary policy between two countries. Secondly, this paper analy-zes respectively the theory of price stickiness and rational expectations cause the asymmetry of monetary policy. Then we use CC-LM model analyze the reason of credit rationing and capital fund lead to the asymmetry of monetary policy. Finally, this paper establishes VAR model which contains the broad money supply, prices and exchange rates, research the influ-ence monetary policy impact on price from January2001to December2012between China and the U.S.. and with the impulse response function analyze and compare price asymmetry of the monetary policy of two countries.This paper draws the following conclusions:1. There are differences between the price conduction mechanism of China and the U.S, but there all exist the asymmetry of monetary policy.2. Rational expectations, price stickiness and credit transmission mechanism all lead to the asymmetry of monetary policy.3. The monetary policy of China and the U.S. are all asymmetric, and the asymmetric effects are different. |
