The Research On The Region Effect Of Monetary Policy Based On The Perspective Of Regional Differences In Financial Structure

Monetary regional effect has always be researched by economists nowadays.The effect of monetary policy is going to change because of the different circumstances,which will weaken the results of macroeconomy regulation and control.Every part of region in China has their own distincted social and natural circumstances which influenced the practice of monetary policy a lot.This paper is based on the theory of monetary policy transmission mechanism to analyses how the different regional financial structure influence the effect of monetary policy.In this paper,China is divided into three parts due to their large difference in financial structure and social development level as the study areas,they are the east region,the mid region and the west region.The empirical studies of this paper mainly includes two parts,first of all,this paper theoretically analyzes and confirms the existence of regional effects of monetary policy in different part,and then,paper draws support from the VAR models and impulse response function to analyze how the financial structure impact the function of monetary policy.Finally,according to current situation and regional financial structure of the east,the mid and the west region,we recommend some of policy suggestions,including the adjustment of the financial market and architecture,we also advocate to practice different monetary policy in different religions.