Differentiated Monetary Policy, Capital Accumulation and Coordinated Development of Regional Economy
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| Title | Differentiated Monetary Policy, Capital Accumulation and Coordinated Development of Regional Economy
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| Author | Ni PengFei and Zhao Yingwei |
| Organization | Chinese Academy of Social Sciences；Qingdao University Of Science & Technology |
| Email | ni_pengfei@163.com;346405158@qq.com |
| Key Words | Reserve requirement ratio, Capital spatial allocation, Regional differentiation |
| Abstract | Based on the footloose capital model (FC model), the paper introduced a variable “savings”, and the capital property is integrated into the model. The extended model proves three hypotheses, explains mechanism of fiscal policy and monetary policy on capital spatial allocation, applies the empirical evidence and the numerical simulation to regional economic differentiation effect of monetary policy and fiscal policy, and proposes the corresponding policy recommendation:
Combination of a differential monetary policy and a household-subsidized fiscal policy accelerates convergence of regional economic differentiation. The paper applies the numerical simulation verifying that the policy combination can accelerate the convergence of the regional economic differentiation, and that the household-subsidized and welfare equalization fiscal policy has a prominent scale-increasing effect of local market in the underdeveloped region.
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| Serial Number | WP1023 |
| Time | 2016-02-02 |
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