The Study On Regional Effect Of Monetary Policy

Monetary policy is one of the main means for macroeconomic regulation and control in china. The application effect of monetary policy will also have great impact on a country’s economic. Due to the imbalance of economic development between different regions in a vast country, unified monetary policy will result in different impact on actual economic growth, which we know as the regional asymmetry of monetary policy effects.This paper based on the theory of the transmission mechanism of monetary policy, expounds the target system and the main transmission channels of monetary policy. Points out china’s monetary policy have different transmission channels in theory, because of differences regional economic development level. According to the state council development research center of research, this article is divided china into eight big economic regions. Verify the obvious differences between the eight areas from the regional overall economic development, financial development and enterprise development, etc.In the fourth chapter, this article using SVAR model to make an empirical test on the regional effects of monetary policy in our country. This paper selects the M2 and loan balances, real GDP and the GDP deflator for related substitution variables, with the data of 1978-2013 as the sample interval. Proved that the monetary policy have significant different effects in different area to promote regional economic growth. Through the correlation analysis, Show that the level of regional financial development and regional economic development level is the most important factors that affect the regional effects of monetary policy.In the last chapter, this paper give some policy advises to improve monetary policy transmission channels in less developed areas, speed up the development of regional finance, and promote the development of regional economy. We suggest the people’s bank of China should adjust regional Organizational structure, carry out Regional different policy and Support regional financial markets.