Trends In Open Market Operations Overseas And Their Implications To China

There has been lots of studies on monetary policies, however, there is still a lack of in-depth and specific studies on the various technical factors that affect open market operations and on the relations between open market operations and other monetary policy tools.This thesis first studies the open market operations in United States, where the required reserve system still exists and in Canada, where the reserve requirements have been abolished. Then the thesis compares the open market operations in China, the United States and Canada from perspectives of operational objectives, the relations between open market operations and other monetary policy tools, the technical factors that affect the open market operations, etc. Finally the thesis gives suggestions on how to improve open market operations.The suggestions include: to further the exchange rate reform and change the rigidity of money supply caused by foreign exchanges, to improve the deposit reserve system and enhance the sensitivity of financial institutions to open market operations, to improve the issue of treasury securities and lay a solid foundation for open market operations, to try setting up the operation band of money market interest rate and to reform the deposit management of Finance Ministry.