The Research On Asymmetric Effects Of Monetary Policy On Industries In China

Monetary policy is an important means of the central bank’s macroeconomic control, but the asymmetric effects of monetary policy among the industries influence the effects of the implementing of monetary policy and question for the way of "one size fits all" which adjust the monetary policy. The asymmetric effects of monetary on industries is based on the,it is comparable. The research of this paper show that the price stickiness, the transmission of monetary policy and the index of Industry’s heterogeneity all effect the impact of monetary policy to different industries. Specially, the index of industry’s heterogeneity is the main reason of the monetary policy’s asymmetric effects.The empirical research is divided into two parts. In the first part, this article measure the monetary policy impact on the effectiveness of different industries in different policy directions and find the effectiveness of relaxing monetary policy is not significant, but the tightening monetary policy’s effectiveness is not significant and perform differently among different industries; Secondly, the study of monetary policy industry effect is added to the economic cycle factors, we found the recession can strengthen the effectiveness of the tightening of monetary policy and weaken the expansionary monetary policy effectiveness. The impact of the economic cycle on the effectiveness of monetary policy in the inter-industry also show asymmetrical characteristics.In the second part,this paper firstly use index of industrial heterogeneity to explain monetary policy’s asymmetric effects on industries. The research find the interest rate sensitivity index is related positively to the effectiveness of monetary policy. The industries balance sheet indicators is negatively correlated with the effectiveness of monetary policy. The industrial property ownership, such as the proportion of state-owned assets and the effectiveness of monetary policy is negatively correlated; then we use the impact of the economic cycle variables on the effectiveness of monetary policy in different industries and use the industrial heterogeneity indicators as explanatory variables. We find the industrial interest rate sensitivity strengthen the impact of the economic cycle indicator on the effectiveness of monetary policy; industrial ownership indicators and indicators of industrial scale weakens the impact of economic cycle indicator on the effectiveness of monetary policy; balance sheet and liquidity indicators of the economic cycle indicators strengthen the impact of the economic cycle indicator on the effectiveness of monetary policy.In this paper, we find that industry effects of monetary policy and industrial heterogeneity index has a significant correlation by empirical studies. The industrial heterogeneity index have an impact on the effectiveness of monetary policy in the policy direction and economic cycles. Formulation of monetary policy should take into account the characteristics of different industries, and supporting the introduction of industrial policy and fiscal policy.