An Analysis Of The Regional Differences In The Effect Of Monetary Policy Credit Channel In China

Monetary policy in macro adjustment and control is one of the most basic tools in macroeconomic and its validity often become the focus of research’s attention. Transmission channel is policy tool which must couple with intermediary index in order to reach the policy ultimate goal so changing specific economic parameters in effect. The efficiency depends largely on smooth monetary policy transmission channel. With the development and progress of the socio-economic system, the transmission channels of monetary policy has become increasingly complex, making its study more and more complicated and important. Credit management is still an important means to regulate economic entity for the central bank. Credit channels play an important role in the transmission of monetary policy in our country at present. It is because in the monetary policy transmission channel control system form of its kind of special importance, macroeconomic and monetary policy will be transmission channels as an important research field.This paper use PVAR model and spatial panel model to analyze the different effect in monetary policy transmission channels. In the PVAR model, yearly data from 1992-2013 are used and full use of unit root test, impulse responses and variance decomposition to empirical analysis. The results show that the more degree of financial and economic level a region have, the less reaction will have according to monetary policy. Well-developed region have better mechanism to resist monetary policy. In spatial panel model, different data in disparate region are used to model. The results show that the coefficient and spatial effect are inconsistent. This proves that the disparate region will react different in the same monetary policy.