The Study On The Regional Economic Effect Of Monetary Policy

Monetary policy is the basic principle and guidelines formulated by the state for the realization of the macroeconomic goals.Through the operation of monetary policy tools,the central bank changes the intermediary variables of monetary policy,thus affecting the entity in the real economy.The objectives of monetary policy include the components of the coordinated development of regional economy,and regional differences have an important impact on the realization of monetary policy objectives.The Yangtze River Delta region is the most developed area in China economy,it plays an important role in the Chinese economic development,steady growth in the Yangtze River Delta economic coordination will contribute to the development of China's economy,and to promote the construction of The Belt and Road ".However,due to the vast area of the region and imbalance of productivity development,the difference between the economic development level of the Yangtze River Delta region get more and more obvious.The effect of monetary policy may become the driving force of widening regional differences.The article is divided into the following parts: First of all,using factor analysis to compare the economic development and the difference between the 30 cities in the Yangtze River Delta in 2015,and then cluster analysis on the similarity of regional economic development.Secondly,select the data of 16 years in 2000-2015 years,build the VAR model for five regions after clustering,analyze the difference of monetary policy effect in different regions of the Yangtze River Delta.Finally,according to the above theory and empirical study,the relevant conclusions and policy recommendations are obtained.The results of the study show that,(1)The output of high economic level in the Yangtze River Delta has a greater response to the impact of monetary policy,and the degree of response is more intense;also when its prices impacted by monetary policy shocks,it has a shorter time to reach response extreme and has a more sensitive response.But the response peak is obviously less than the area with poor economiclevel in the Yangtze River Delta,and the response degree is not strong in the poor economic level.(2)Selecting 16 cities from the five categories after cluster analysis,from the four aspects of differences in regional industrial structure,financial characteristics and development,monetary policy transmission micro subject and economic openness,the analysis shows that the proportion of second and third industries in high level of economy area are higher;more developed financial markets,a relatively high degree of financial deepening;a large number of small and medium-sized enterprises,with large scale and high output value;the income of urban and rural residents is relatively higher,the financial assets are diversified,and the development of consumer credit is rapid;high dependence on foreign trade and rapid development of import and export trade.All of this make high level of economy area are more responsive to the impact of monetary policy.Accordingly,it is concluded that the area of poor economic level in the Yangtze River Delta should adjust the industrial structure reasonably and implement the policy of investment discount;promoting the development of the financial market system in the poor area of the Yangtze River Delta;widening the financing channels of small and medium sized enterprises and reducing the cost of financing;accelerate the development of foreign trade and expand exports so as to promote economic growth.