Research On Differences Between The Development Of Regional Financial And Monetary Policy Effects

For a long time，China has adopted a unified national monetary policy, theunified monetary policy ignores the reality of the imbalance in regional economicdevelopment, it can not meet the different needs of different regions, resulting in asignificant regional differences of the effects of monetary policy, to some extent,italso exacerbated the imbalance of regional economic and finance development.From the monetary policy regional effects of d ifferences theory and monetarypolicy conduction theory, the small Northwest Territories and the Yangtze River Deltaregion for example, the article analyzes the effect of the unified monetary policy ondifferent developing level regions. First, the article analyzed the current situation ofthe financial development of the two regions, mainly describes the state of thedevelopment of the banking and insurance industries; followed, from the environmentof the monetary policy transmission, the transmission intermediaries and the mainbody of transmission three aspects analyzed the two regional currency differences inthe policy transmission process.Secondly, in order to study the regional effects differentiation of monetary policy,we established of a panel data model, and made Granger causality test to verify thelevel of financial development and capital investment rate, the level of science andeducation, goods market efficiency, financial market efficiency and industrial interestelasticity have causal relationship to each other whether in long-term or short-term, soprovides a theoretical basis for our analysis of the monetary policy transmissionendogenous variables of financial development.Finally, based on the above study, it selected the amount of money supply as themonetary policy transmission mediating variables, the other five variables, the rate ofcapital investment, science and education levels, commodity market trading efficiency,the efficiency of financial markets trading and industrial inte rest rate elasticity as thefinal variable to reflect the level of financial development, established VAR modeland made impulse response analysis, found that there are some differences betweenthe degree of sensitivity of the small northwest region and the Yangtze River Deltaregion reaction to the monetary policy, there are also differences between the reflectspeed of financial development endogenous variables to the monetary policy, their monetary impact strength are also not the same.