Research On The Asymmetric Effect Of Monetary Policy From The Perspective Of External Financing Dependence

Monetary policy is one of the important means of national macro-control.It plays an increasingly important role in maintaining the balance of total currency,maintaining price stability,and leading the healthy and sustainable development of the economy.However,for macroeconomic studies affected by monetary policy,generally only focus on the aggregate effect of monetary policy,ignoring the asymmetry of monetary policy caused by the heterogeneity of industries,making the monetary policy of aggregate adjustment further intensified As a result of the imbalance in the industry,the "stronger,stronger and weaker" industrial development situation is not conducive to the adjustment of the industrial structure,which in turn affects the implementation of monetary policy.Under such economic background,research on the existence and mechanism of industrial asymmetric effects of monetary policy has strong theoretical and practical value.It is an important topic for monetary policy makers to discuss the impact of monetary policy on industrial growth.Recently many studies believe that monetary policy has an asymmetric effect on industrial growth.For example,Xiao Qiang and Zhang Xiaotong(2014)found the asymmetric effect of monetary policy on industry by using the factor expanded vector autoregression(FAVAR)model.However,Xiao and Zhang's opinion focuses on the vector autoregressive model instead of discussing the mechanism of asymmetric effect deeply.In this case,this study tries to introduce external financing dependence to discuss about how monetary policy can influence growth of industries,and investigate how the mechanism of external financing dependence can lead to the asymmetric effect of monetary policy on industrial.The mechanism of external financing dependence is significant when discussing the influence of monetary policy on industrial growth.With high dependence on external financing,loose monetary policy could alleviate the financing constraints of industries,which can accelerate industrial growth.In contrast,tight monetary policy could intensify the financing constraints of industries which highly rely on externalfinancing to inhibit industrial growth.However,for those industries with low dependence on external financing,this mechanism could be a failure,which means the monetary policy can affect industrial growth slightly.Due to the nature and characters,different industries rely on external financing variously.The data calculation shows that there is a high dependence on external financingthe in the industry of real estate,while for wholesale and retail this relationship is inconspicuous.The loose monetary policy can accelerate the growth of real estate industry which highly rely on external financing,while the tight monetary policy would cause negative effect.For industries with low dependence on external financing,the monetary policy has a relatively small impact on the growth of them.This study is a supplement to the investigation of this problem,which could be more pertinent and practical to the formulation of monetary policy.Based on controlling total amount as well as following deposit loan ratio and the safe loan rules,traditional implement of monetary policy in China is to regulate the total amount of loans and their investment direction,and control economy as well.According to the theoretical research and empirical analysis,the impact of monetary policy on the growth of different industries could result differently due to the dependences of external financing.Therefore,the solutions such as completing the regulations of investment direction could solve the problem of monetary policy ' s asymmetric effect on industry as well as control the total amount,which could also regulate the construction of industries and adjust economy on target.