Analysis On China's Instruments Of Monetary Policy

Since 1997, the PBC has adopted many instruments of monetary policy to control deflation, increase investment and consumption. Interest has been decreased successively, deposited reserve has also been lowered , and rediscount and reloan from PBC has been enlarged, etc. However, economy system reacted without excitement fronting these instruments .Money supply increased slowly, residential investment and consumption were not increased with high effect, and economy increased without continuous power. This paper studies why of these effects instruments decrease and how to increase the effects .By using empirical analysis and comparative analysis as main research methods, this article expresses a systemic study on china's instruments of monetary policy in different periods. Therefore , the conclusions are worthy in directing the practice of monetary policy instruments in china.