Abstract: This paper uses M1 and cross bank interest rate as the monetary policy indicator of China,in order to study whether the distinctions among anticipated policy,unanticipated policy,positive innovations and negative innovations are relevant for explaining movement in real output.The results show that there are clear asymmetries in the anticipated/unanticipated and expansionary/contractionary policies.The evidence supports that monetary policy of China is non-neutral and endogenous in a short time.It has not only the nominal impact on price level,but also the real impact on real output.

Key words: monetary policy, monetary policy rule, discretional monetary policy, asymmetry