QI Haodong,etc:Monetary Policy,Local Government Quality and Financing Constraints——Based on the Influence of Monetary Policy Transmission Mechanism

Abstract：In this paper,we explore the influence of local government governance on corporate financing constraints,and the transmission mechanism of monetary policy.Our empirical research suggests that high-quality local government has a positive effect on corporate financial constraint,and the positive effect is more obvious in firms which face more serious financing constraints;high-quality local government can optimize the monetary policy transmission mechanism,and strengthen the effect of monetary policy on easing financial constraints which is more obvious in firms which face fierce financing constraints.Based on monetary policy transmission mechanism,this paper tries to put forward a new explanation on the enterprises' financing behaviors from the perspective of local government quality.Meanwhile,this paper also provides micro evidences for the influence of local governments on monetary policy transmission mechanism and its regional effect.

Key words： Monetary Policy    Local Government Quality    Financing Constraints

source:Finance & Trade Economics ,No.4,2015