Study On China's Monetary Policy Intermediary Objective Selection

It is critical for the monetary authorities to select the appropriate intermediate goal of monetary policy. Because it has a direct bearing on the effectiveness of monetary policy. Studying on the selection and orientation of the intermediate goal of monetary policy, not only has profound theoretical significance, but also has a wide range of practical value. At present, China's money supply is the intermediate goal of monetary policy, but because of many factors, the appropriateness of the money supply intermediate goal was weakening.This paper is divided into three parts, in which the third part is the core of the full article.The first part first introduced the intermediate goal of monetary policy theory and recalled the intermediate goal of monetary policy in the historical process, and then analyze the cause of the adaptation and the effect weakening of China's current monetary policy intermediate goals - the money supply target.The second part introduced the history of the western countries intermediate goal and the evolution of today's most common type of intermediate goal, which put forward useful lessons for the reform of China's intermediary monetary policy objectives in the future.The third part mainly analyze the feasibility of taking interest rates, exchange rates, inflation rates and money supply as the intermediate goal of China's monetary policy, and then made recommendations on the future of China's monetary policy objectives of the intermediary choice. This part suggested not take into account the current economic variables for the supply of money can replace the intermediate goal position. We can not simply deny that the money supply, China should adjust the money supply indicators of the statistical system and strengthen the delivery of basic money, and so on, which means to enhance the effect of money supply, while steadily promote market-oriented interest rate and the development of financial markets, when conditions are ripe, the interest rate will be the introduction of intermediate goals.Using compared methods, combined with China's national conditions, the money supply, interest rates, inflation rates, exchange rates for detailed feasibility studies and analysis of the theory. And with China now focus on the actual situation, objective assessment their strengths and weaknesses, for their inadequate, provide my point of view on how to improve the performance of intermediate goals.