The study analyzed how China's monetary policy from 1995 to 2008 affected the economy. By using a special model and various tests, the researchers found that the short-term impact of the policy was stronger than the long-term impact. Real interest rates didn't have much effect on exchange rates but did negatively affect output. Exchange rates also had a negative impact on output. To make the policy more effective, it's suggested to continue interest rate liberalization and adjust exchange rate fluctuations appropriately.