An Analysis of Effectiveness of Monetary Policy in China

This paper explores that, despite of the distinctions among China and those developed countries, the positive correlation between the GDP growth rate and monetary aggregates does exist in China. Many discretionary fiscal and monetary policies have been taken to stimulate economic growth in recent years, but the effects don't stand out as some experts anticipated. As for the intrinsic mechanism, it needs some further and deeper studies. Thus, this paper is meant to stimulate discussion, not to be the final word on anything.