The Influence Of Amercian Monetary Policy On Chinese Economics Spillover Effect

The issue of monetary policy’s international spillover effects has been a hot topic in international economy. However, both existing theoretical and empirical literatures did not give a clear answer to it. There are also no consistency conclusions about the mechanism of exchange rate regimes and capital controls in response to external monetary policy shocks. Then, under the conditions of China’s current open-door policy, exchange rate regime and capital controls, how does the U.S. monetary policy affect China’s macro-economy? This paper will be oriented to real economic data from two angles, including trade channels as well as financial channels, to make a comprehensive grasp of the transmission channels and impact of U.S. monetary policy on China’s macroeconomic spillovers.Firstly, this paper reviews and combs the relative literatures about monetary policy international spillovers, and carries on the simple evaluation. Secondly, from the open macroeconomic model, this paper analyses the international transmission channels of monetary policy, and then described the U.S. monetary policy from the perspective of reality overflow, then In the United States as the starting point for China’s monetary policy conduction way, This paper adopts the structure of vector autoregressive (SVAR) model, empirical studies have found that U.S. monetary policy through the several mechanisms significantly influence the operation of our country’s economy. Dollar supply, the fed’s balance sheet, total assets of U.S. monetary policy and interest rate variables can affect our country’s economy, especially after the implementation of quantitative easing monetary policy, the fed’s balance sheet changes impact on our economy even more significantly. The end of the article summarizes the text’s main conclusions and put forward relevant policy suggestions and further research directions.