Dynamic Changes of China’s Monetary Policy Transmission and Regulatory Optimization Under the New Norm
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Abstract Through structural VAR model with the variable coefficients, this paper takes into account the volatility of exogenous shocks and deeply analyzes the dynamic changes of China’s monetary policy transmission from 1996 to 2016. Studies show that as China’s economy gradually steps into the new norm, the short-term and medium-term impact of monetary shocks on GDP is significantly reduced. At the same time, the impact of monetary shocks on inflation is significantly greater than that on economic growth in comparison. On the other hand, changes in interest rates will have an obvious negative impact on China’s economic development, but the overall volatility is not great. China’s monetary policy transmission changes are largely due to the profound changes in multiple aspects such as China’s economic structure, social financing structure and the imbalance between the real economy and fictitious economy.
XU E-Beng,WANG Juan. Dynamic Changes of China’s Monetary Policy Transmission and Regulatory Optimization Under the New Norm. Economic Survey, 2018, 35(5): 0151.
2018, Vol. 35 
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