Abstract: Based on the financial monthly data from July 1996 to June 2017 in China, this paper finds that there are obviously structural breakpoints in the monetary policy effect in China during the Sample period by using the Chow Breakpoint test. On this basis, by constructing a Model and using interest rate as a threshold variable, we examine the asymmetry of the monetary policy effect of China's monetary policy in different interest rate regions. The result shows that in the low Interest rate system, the output effect of pricing monetary policy was not significant, indicating that Under the low interest rate environment, China’s interest rate policy may be trapped in the “liquidity trap". In the coming period, quantitative easing monetary policy can be used as an important policy option for "pro-growth".

Key words: Monetary Policy Effectiveness; Chow Test; Threshold Regression Model