The Research On Transparency Of China's Monetary Policy

Since the 1997 Asian financial crisis, central banks have to strengthen their disclosure of information to enhance the transparency of monetary policy,and it is becoming a new international trend.Research on the transparency of monetary policy has been to a hot topics of the academic and practical discussions and studies .However, at the theoretical level, the transparency of monetary policy still failed to reach consensus on many issues.The study of transparency in the domestic sector is less, in particular, can be combined with China's national conditions.The transparency of monetary policy refers to the openness of monetary policy, in particular with the central bank announced the decision-making situation and explain the reasons for the decision-making.The transparency in monetary policy is expected to be able to guide the public's expectations,to help solve the problem of asymmetric information and dynamic monetary policy inconsistency, as well as monitoring the government self-serving acts while it doing the public choices. At the same time, the transparency of monetary policy was not only the contents of a strict mathematical technology, but also had a non-technical description to explain. The effect of the transparency of monetary policy are many, will help increase the transparency of monetary policy transmission and to achieve the goal, and stability of the macro- financial economic operation.In practice, monetary policy transparency is a major institutional arrangements in order to solve the tendency of inflation.After a comparative analysis of the world's major countries of the Central Bank's monetary policy transparency.Found that Operating practice of the transparency of monetary Policyis different, due to difference of the history of economic conditions and system, but the basic operation framework of the transparency is the same.Then, after summarized the practices of the China's central bank transparency , the paper use internationally prevailing's Indicators Analysis-- E&G index, to measure china's monetary policy transparency, combining with China's actual situation and revising this index system. The demonstration result reveal that transparency of china monetary policy hangs down comparatively before 1995 and it has very big rise after 1995.However,it still not satisfactory in compared with the inflation targeting countries,remaining to further improve. Besides ,the rising of the transparency is helpful to the stability of the macro-economy's operation.Finally, The paper proposes some suggestion that build monetary policy transparency frame system,including target transparency,information transparency, policy-making transparency and operation transparency,while analyzing the insufficient of transparency of china monetary policy .