The study of the effectiveness of China's monetary policy — Conduction from intermediatetarget to the ultimate goal

摘要

In this paper, I use the time-series data, which is from 1997 to 2010, and I also use the AR root test method to test the stationary of VAR model. Then using the VAR model and the impulse response function to test the effectiveness of monetary policy, I can conclude that the broad M2 monetary supply fluctuations have a significant impact on price and economic growth. And the impact on prices is proceeded to that on real economy, therefore, currency in our country is non-neutral.