Study On The Relation Between The Monetary Policy And The Economy Development In The Period Of Deflation In China

Finance depends on economy, and finance also influences economy. As the carrier ofthe operation of finance-----currency and monetary policy, how does it influence economy?This article discusses it during the period of deflation in China. Based on evaluating the monetary policy in the period, I research the effect of monetary policy. Finally, the suggestion of monetary policy to deal with deflation is given.This article is composed of 8 chapters.In chapter 1,1 point out the necessity and the methods of researching monetary policy.In chapter 2,1 discuss the theory of monetary policy and nail down the signification of monetary policy and its cooperation with finance policy, especially research the relation between monetary policy and economy development.In the third chapter, I research the targets and tools of monetary policy of China.In chapter 4, on the base of discussing the standard of deflation, I come to a conclusion that China's economy development is confronted with the challenge of deflation from 1998 to 2000. At the same time, I summarized China's monetary policy in the period.Is China's monetary policy from 1998 to 2000 effective? What are the factors that influence the effect of monetary policy? I discuss them in the 5th and 6th chapter.In chapter 7, analyzing overseas currency deflation and monetary policy, I summarize the edification of how to with deflation.With the relation between monetary policy and economy development, 1 consulted the result of re-appraise of monetary policy in the period of deflation and assimilate overseas experience.Finally, how to choose the monetary policy in the deflation of China is provided.