With the reduced macroeconomic model and the interest rate transmission channel based on price stickiness, the theoretical analysis shows that the quantitative easing policy can create positive output effect and the inflation effect. The real output can create the negative inflation effect. By SVAR model, the empirical test of accumulated response turns out that Chinese-style quantitative easing policy has positive effects on output and inflation, and the real output has the negative inflation effect. For those reasons, the moderately ease monetary policy and tax cuts are benefitial to economy stability and price stability in China.