By Wang Bingwen, Research Institute of Public Administration and Human Resources, DRC

Research Report, Special Issue, No.75, 2019 (Total 1703)

2019-9-26

Abstract: In the new era, China is promoting the comprehensive and coordinated development of regional economies. Against this background, we need to give full play to the macro-regulatory role of monetary policy, guide the adequate and free flow of production factors and resources among regions, and facilitate the high-quality development of regional economies. This paper elaborates the evolution of China’s monetary policy and regional economic development, makes a qualitative analysis of the credit transmission mechanism of monetary policy and its influencing factors, and then makes a quantitative analysis of the regional effects of China’s monetary policy based on credit channels. The empirical conclusion shows that monetary policy has a positive effect on the economic growth of different regions in eastern, central and western China, but the effects differ a lot in various regions, and regional finance, economy, market structure and monetary policy can interact on each other. Based on the empirical results and in light of the features of China’s monetary policy and the reality of regional economic development, this paper finally proposes some policy options on coordinating the regional effects of China’s monetary policy respectively from the perspectives of reforming the main entities of monetary policy, improving the objects of monetary policy and ensuring a smooth transmission mechanism for monetary policy.

Key words: monetary policy, regional effects, credit channel