The Asymmetric Effects of Monetary Policy Across Industry in China: Based on Firm Size

This paper attempts to demonstrate asymmetric effects of monetary policy in different industries from the perspective of the size difference. Based on theoretical analysis, the paper illustrates the proportion of different enterprises scale in different industries can produce different reactions to the monetary policy by using the nonlinear STR model, we find that the asymmetric industries effects of monetary policy in our country is apparent, the main reason for this phenomenon is the different enterprises scale. The higher proportion of large and medium size enterprises in industries, the more sensitive to monetary policy responses, On the contrary, the lower proportion of large and medium size enterprises in industries, the less sensitive to monetary policy responses.