| Since 2006, in China's Macroeconomic there is a phenomenon of excess liquidity and prices generally rising. In order to maintain economic stability and healthy development of the economy to avoid big fluctuations, the People's Bank of China used series of monetary policy tools to control the current situation.At present the banking system liquidity is basically under control, but price rising is still in high,and inflationary pressure remains highly. Then, Then, in the end how to understand the current liquidity, and how to use the three tools of monetary policy and other monetary policy tools to control excess liquidity, these questions are worth to be studied.The article structure is divided into three parts. The first part the article analyzed the liquidity surplus , introduced the relevant concepts and theories on excess liquidity and from many perspectives studied the liquidity.At last the paper draw Conclusions that no matter from a macroeconomic perspective, the banking system within or outside the banking system, excess liquidity is the existence of an objective reality.The second part the article evaluate implemented the monetary policy tools.In this part the paper reviewed and evaluated the the three monetary policy tools.In short,in view of the practice, it is obviously important that this combination of a set of policy tools controled the flow of the banking system, but not clearly in controling prices rising.In the third part the article is focused on the optimal monetary policy tools choice of the current situation. In this part the paper analyzed the influence of constrainting the choice of the tools of monetary policy, the transmission channels of three major tools of monetary policy , and its advantages and disadvantages.Finaly the paper drawed the conclusion that the optimal choice of monetory policy tools is the combination of the open market operation, the interest rate policies and the highly targeted and selective monetary policy tools.tools . |
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