1. Regional Differences in the Effects of Monetary Policy: A SVAR-based Analysis.
- Author
-
FENG Si-xian, REN Xiu-qing, and YI Zhi-gao
- Subjects
MONETARY policy ,AUTOREGRESSION (Statistics) ,IMPULSE response ,REGIONAL economics ,ECONOMIC policy - Abstract
The previous discussions on monetary policy mostly focused on the holistic effects of its implementation rather than analyzing the possible regional differences in its effects. Through employing such methods as the model of Structural Vector Autoregression (SVAR) and Impulse Response Function (IRF) , we analyzed the differential regional effects of monetary policy. It is found that there exist manifest regional asymmetries in the monetary impacts on economy not only in terms of the time but also in terms of the extent of the effects. Therefore, in making monetary policy of our country we have to adhere to such a principle as to combine adjusting the gross volume with optimizing the structure and to take into consideration uniformity and diversity. At present, as far as the narrowing of the regional divergences and maintaining of the uniformity of the monetary policy are concerned, it is of great significance to keep in perspective the different regional demands for monetary supply and to optimize the regional structure of monetary policy. [ABSTRACT FROM AUTHOR]
- Published
- 2011