Government Competition, Credit Mismatch and the Effectiveness of Monetary Policy--An Explanation for M2/GDP

摘要

This paper points out that the key of the current China monetary policy cannot effectively promote the economic growth of the local government is central to the relationship between competition and credit preference for state-owned enterprises, strengthen the local government intervention, reduce the efficiency of the allocation of resources of monetary policy. In the future, reshaping the relationship between the central and local governments and the further reform of state-owned enterprises is the key to improve the efficiency of monetary policy.