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| Identification and Test of the Monetary Policy Transmission Mechanism under the Open Economy Conditions |
| FU Yi-Ting, FAN Shu-Guang |
| 1.Changchun Institute of Technology, Changchun, China；2.Jilin University,Changchun, China |
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Abstract The structural vector auto regression model was used to test the effects of Chinese monetary policy the economy under the open economy conditions. It is found that the inflation rate, interest rate and exchange rate is sensitive to the output shocks and interest rate is sensitive e to the exchange rate shock. It is concluded that the foreign monetary policy influences our monetary policy through the channel of exchange rate.
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Received: 28 September 2006
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2007, Vol. 4 
