In this paper, using regime switching model and impulse response function, we investigate the dynamic relationship between China's monetary policy shocks and output. We find that significant asymmetry of monetary policy to output and the response of output to the shocks correspond to“low response” regimes and “high response” regimes respectively. According to the time varing transition probability(TVTP)model, we further examine three possible types of asymmetry which include such as the direction, the size of the monetary policy and the phase of business cycle.

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