The Effects Of Monetary Policy In Finacial Crisis

Since 1970, the financial crisis began to attack the global economy frequently. For example, debt crisis of Latin American in 1980, . savings and loan crisis of the U.S in 1987, the European currency crisis in 1992, the Asian financial crisis in 1997 , U.S. subprime crisisin in 2007. the subprime crisis, which originated in the United States, has spread to global economy, causing a worldwide recession.After the financial crisis, governments around the world, actively introduced various measures to deal with financial crisis. Response to the financial crisis, monetary authorities have a special monetary policy implementation. There are many difference in monetary policy of the crisis and conventional monetary policy.Therefore, the combination of specific national conditions of China and its economic and financial situation, how to make scientific and rational monetary policy on the future development of China's economy is significant.This paper is divided into five parts, The first part is the preamble introduces the research background and significance. The second part is a brief introduction on the financial crisis and the theory of monetary policy. The third part focuses on the Chinese economy in the financial crisis and Chinese monetary authorities specific measures to deal with the crisis. The fourth part measure the effect of monetary policy during the crisis. The fifth part is the recommendations on monetary policy. Response to the current inflation, on the one hand we need to control the size of credit , on the other hand to use exchange rate policy.