TITLE:
Effectiveness of Structural Monetary Policy: A Study Based on NK-DSGE Model
AUTHORS:
Fan Yang
KEYWORDS:
Structural Monetary Policy, Small and Medium-Sized Enterprises (SMEs), Targeted Regulation, DSGE, Economic Stability
JOURNAL NAME:
Open Journal of Applied Sciences,
Vol.16 No.4,
April
30,
2026
ABSTRACT: By constructing a dynamic stochastic general equilibrium (DSGE) model incorporating heterogeneous enterprises and financial sectors, along with the introduction of structural monetary policy instruments, this study theoretically demonstrates that structural monetary policy exhibits stronger targeted regulatory capacity in facilitating credit financing for small and medium-sized enterprises (SMEs) than it does in maintaining economic stability. Specifically, targeted relending, targeted reserve requirement ratio cuts, and lending facilities can effectively promote SME financing and output growth. However, careful coordination is required when implementing these policies alongside traditional aggregate monetary policy tools. Among these instruments, targeted reserve requirement ratio cuts demonstrate relative advantages in balancing targeted regulation and economic stabilization objectives.