The Impact of Federal Reserve Monetary Policy on China's Industrial Economy

Abstract

As the two largest economies in the world, China and the United States have a far-reaching impact on China's economic growth and global economic development. However, generally speaking, the impact of the Federal Reserve's monetary policy on the economic growth of various provinces in mainland China is quite heterogeneous. For example, the impact of the Federal Reserve's monetary policy on the economic growth of eastern coastal and border provinces is less than that of inland provinces. Therefore, China should not only comprehensively use monetary policy and fiscal policy tools to effectively deal with short-term external shocks but also make full use of the favorable factors brought by the Federal Reserve, solidly promote economic restructuring, transformation, and upgrading, accelerate the structural transformation of economic growth momentum, and actively cultivate new kinetic energy for economic development.