Study On Monetary Policy Based On Coordination Between Financial Stability And Monetary Stability

For a long time,the main responsibility of monetary authorities is to maintain macroeconomic stability,thus forming four goals of the classical monetary policy in macroeconomic theory:economic growth,price stability,full employment and the international balance of payments.And after a long practice and demonstration,most economists will maintain monetary stability in the monetary policy goal first.However,America's subprime crisis erupted in 2008,the academic circle and practice circle began to reflect on the comprehensiveness and rationality of monetary policy target system.In the financial system running an unstable bubble(especially),under the condition of the traditional monetary policy framework in the process of operation of macroeconomic cannot effectively identify actual situation,and no legal system to develop a more effective monetary policy to prevent the spread of the instability of the financial system to the real economy.Whether financial stability should be a clear goal of monetary policy is similar to whether monetary policy should be pegged to the asset price,has become the current hot topic.Due to the financial stability and monetary stability in some cases there is a conflict between,no matter whether it is as a clear monetary policy goals,how to realize the coordination between financial stability and monetary stability is the difficulties which the current academic and practical circles need to solve.As the world's second largest economy,China' s economic system and financial market operation situation has received worldwide general economic participants,scholars and politicians to focus on.With the two-way opening up of China's financial system gradually thorough,the domestic financial market,there have been significant instability around 2008 slump in China's a-share market exploded,the rapid prosperity of the real estate market around 2011,in June 2013,the inter-bank market"money shortage" events,in mid-2015 stock market crash,all reflect the immature and vulnerability of the financial markets.In the current "three phase superposition"situation,China's economic development and transformation needs a more robust financial system,to ensure the smooth operation of the economic structure adjustment.Based on the above background,this article embarks from the monetary policy framework,analyzing financial stability factors in the role of monetary policy framework,and on the basis of studying the trade-off between financial stability and monetary stability strategy,for the monetary authorities to provide policy guidance.On the basis of the existing literature review,this article first to the connotation of financial stability,and according to the actual situation of China,from the stable operation of financial institutions,financial market stability and financial system operation anti-risk ability three aspects,selected eight basic indicators to build China's financial stability index,with nearly 10 years the significant changes of China's financial market effectiveness for the construction of financial stability index,and analyzed the financial stability index in the implementation of the monetary policy changes,financial stability factors in the role of monetary policy implementation process,to determine the financial stability factors in the monetary policy framework in the position to provide an empirical basis.Since then,on the basis of further investigation financial stability constraints,in the construction of financial stability,index in this paper under China's monetary policy in effect in the process of achieving monetary stability.This requires firstly to reasonably define the connotation of the currency stability,and to find relevant key indicators to achieve monetary stability;On this basis,this paper builds a dynamic stochastic general equilibrium model with the financial stability constraint,to research the robustness of the financial system differences on the influence of the economic system efficiency,on the other hand is also determined by this model empirical simulation in which contains financial stability factors under the condition of the central bank should be pegged to a target to achieve currency stability.Then,this paper use Stan Kerr's game model,for the monetary policy framework of financial stability and monetary stability provide theoretical basis for the coordination,and further build a financial accelerator IS-LM-FA framework,analyzes the main factors which affect the financial stability,and by using the regression equation to estimate the impulse response data of a financial stability index,the reasonable range on the basis of setting a both financial stability and monetary stability coordinate equation of the monetary policy indicator,provide a prospective guidance for the conduct of monetary policy,and the rationality of the indicator equation was validated.Finally,this paper summarizes the general revelation of the reform of China's monetary policy framework,and combining with China's monetary policy practice,as well as financial regulation of management experience,puts forward strengthening our country's financial stability and monetary stability coordination policy recommendations.