The regional heterogeneity effects of monetary policy in china-an empirical analysis based on geographically weighted regression model

This paper presented an empirical analysis of the effect of the monetary policy based on China's 31 provincial data from 2001 to 2010, relying on GWR model. It reveals directly that there exist a spatial autocorrelation and disparity in all provincial effect of monetary policy implementation, through the local Moran autocorrelation statistics and Moran scatter plot of the measurable variable M2. Among the regression models, GWR model considering spatial effects is superior to the traditional OLS model. The empirical result shows that economic growth, commodity price level and investment in the fixed assets have impact on the regional heterogeneity effects of monetary policy, especially the price level. It further stresses that we should adopt stable commodity price level in a more prominent place in monetary policy control. © 2015, Editorial Department of Journal of Hunan University. All right reserved.