The interest rate level and the loose or tight monetary policy -- based on the fisher effect

摘要

Differences in understanding of the relationship between the level of interest rates and monetary policy, People put forward different monetary policies. It is of very important significance for people to understand and implement the central bank monetary policy that the correct knowledge of the relationship between the level of interest rates and the tightness of monetary policy. This paper make an empirical analysis of the Fisher Effect in china with the Fisher Effect Model based upon the theoretical analysis, In order to avoid the "Fisher paradox", it distinguishes between short-term and long-term fisher effect. we empirically analyze the long-term fisher effect by applying the minimum deviation completely revised the auto regressive distributed lag model, the short-term fisher effect by using the generalized method of moments estimation method, to the Chinese data in 1990-2003 as a test sample.