Analysis of the Transmission Mechanism of Monetary Policy on Economic Resilience

Abstract

This study examines the relationship between China's monetary policy and economic resilience from 2010 to 2022, with a focus on the relationship and impact mechanism between interest rates and economic resilience. The aim is to identify the connection between monetary policy and economic resilience and discover how to enhance national economic resilience through monetary policy. This study employs ordinary least squares regression, and the interest rate is used as the core variable which is closely related to monetary policy. The results show a significant negative relationship between interest rates and economic resilience, and key factors such as urban unemployment rate and total import and export volume also have significant relationships with economic resilience.