| As China’s global integration status deepens,countries in the world are closely connected and monetary policies are frequently interlinked.As the world’s largest military and economic country,the United States’ monetary policyhas a profound impact on other countries,including China.After the financial crisis in 2008,the Federal Reserve carried out quantitative easing policy continuously;In 2015,the Federal Reserve entered the path of raising interest rates;The Fed cut interest rates again in 2019.The change of American monetary policy has a certain impact on China’s economy.Firstly,this paper reviews the domestic and foreign literature on the spillover effect of monetary policy in the United States and its transmission mechanism.Then the theoretical analysis of the transnational transmission of monetary policy is sorted out.The paper proposes to use variables with less "information effect" to accurately identify monetary policy shocks,and uses high-dimensional vector autoregressive model to overcome the problems existing in traditional VAR model.A high-dimensional vector autoregressive model with instrumental variables is used to test the impact of US monetary policy shocks on China’s economy.Finally,combining the empirical results and theories,the paper discusses the appropriate monetary transmission channels for China and puts forward corresponding policy suggestions.The conclusions obtained in this article are as follows:First,compared with trade channels,policy channels,and interest rate channels,the transmission mechanism of price channels to monetary policy shocks is more in line with China’s reality.Second,the impact of the U.S.tightening monetary policy has a far greater impact on China’s long-term bonds than short-term bonds. |
