In this paper, we use the monthly data of our money supply, and use the method of estimating the regression equation of money supply and H-P filtering to identify the impact of unanticipated money supply. And further using the method of Cover (1992) to test the asymmetry of monetary policy to test the effect of the positive currency impact and the reverse currency impact on the actual output. The results show that there is obvious asymmetry effect on the effect of money shock on the actual output by HP filtering method. The actual effect of reverse currency shock is obviously greater than the actual effect of positive currency shock, which shows that there are obvious traditions in China's monetary policy Keynesian asymmetry. And the asymmetric effect of the two groups of money shocks on the actual output is not very obvious.

Download