Abstract
Monetary policy has always been a hot research topic, but how to measure monetary policy is still a big difference. This paper transforms the price and quantitative monetary policy tools into a unified index form, constructs a new monetary policy index, and studies the influence mechanism of monetary policy through the vector autoregression model. The study found that China's monetary policy index has experienced a process of first rising, slightly falling back to the platform, and then gradually falling, and the overall trend is consistent with the macroeconomic situation of China in different historical periods. At the same time, the positive impact of industrial added value and inflation will lead to the marginal tightening of monetary policy, and the industrial added value will have a greater impact on the dynamics of monetary policy and last for a longer time. In addition, inflation also indirectly affects monetary policy. This paper is of great significance to understand the trend of monetary policy and to conduct investment decision-making activities.
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