The Effectiveness Of Chinese Monetary Policy On The View Of Duality Economy

This article is based on this fact: since 1996,in order to enlarge the national demand and accelerate the economical development, the central bank of china began to carry out easy monetary policy continuously,while, the investment, consumption and economical development didn't increase as the expansion of monetary, but decrease gradually. All those phenomenons and relevant Empirical research showed that the effect of the easy monetary policy be unconspicuous.The research showed that the main reason what had caused the effectiveness of monetary policy be not conspicuous were not the monetary policy itself, but the duality of our country's economical structure. (It specifically showed such a social economical state including the fellow three in a same time, the dual economy structure between the advanced economy composed with industry in city and the economy mainly composed with agriculture in country, the dual structure of property arosed during the economical system changing between national economy and private economy, the serious differentiation of regional economy among the west, the middle and the east, which had brought about by the unbalance economical developing). The economical duality restrained to the different subject with loan on credit, market permitting and so on, which made the different subject have different sensitivity to the monetary policy. In the same time, the division of the finance market resulted in the interest rate controlling made the monetary policy become an exterior political variable and weakened the effect of monetary policy.The result of this article show that, the dual economy can affect the Chinese monetary policy on its objective, instrument, micro basement, system condition, transmission channel, transmission speed and so on. On one hand, all those effect made the monetary policy deviate the predetermined target especially weakened the effect of the expending monetary policy. On other hand, those effects prolonged the prescription of the monetary policy, which made the effect of monetary policy be inconspicuous in a short time, while is conspicuous in long time. The results were unfit for carrying out a monetary policy on watching for good chance for action.The solutions are as follow, the first, by reforming system, adjusting the industry structure, constructing the credit system, reforming the allocation system and so on to weaken the dual economical structure and give different market subjects a equal national treatment, centralize the economy, centralize the finance market, market the interest rate as we can. The second, to construct and improve the system of Chinese monetary policy, especially develop and improve the system of constructive monetary instrument, develop and improve the national finance market and the financial assets structure and its distributive structure, construct a developed and competitive finance system in the country and in the west and middle part.