Abstract: This paper constructs a dynamic stochastic general equilibrium (DSGE) model with Markov regime switchingcharacteristics, studies the evolution of China's monetary policy regulation mode, and studies the regulatory effects ofmonetary policy rules under different regimes. The results show that in the stable period of low economie fluctuation, thecentral bank tends to adopt the stable Taylor rule, which pays attention to inflation and output gaps at the same time; dur-ing the crisis period of high economic volatility, the central bank pays less attention to the inflation gap and more attentionto the real output gap. In addition, compared with the unstable Taylor rule, the regulation effect of the stable Taylor rule ismore lasting and effective, which is conducive to achieving the dual goals of economic growth and inflation stability.

Keywords: Taylor rule; nonlinearity; MS-DSGE model; regulation mode