An Empirical Analysis on the Effects of Chinese Monetary Policy

VECM model is used to analyze the effects of Chinese monetary policy.The results indicate that currency policy effect of China's was manifested in boosting economic growth,but the economic system has little effect to control inflation.A package of Easy-money policy after financial crisis has played an important role to ensure the rally in China's economy,but it has also increased the speculation in real estate market and stock market,even more seriously,the rising price has produced inflationary expectations.So China should pay much attention to the risk of inflation and prevent stock market and property bubbles.