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In Recent Years The Effectiveness Of Monetary Policy In China

Posted on:2002-03-19Degree:MasterType:Thesis
Country:ChinaCandidate:L MuFull Text:PDF
GTID:2206360032455548Subject:Economics
Abstract/Summary:PDF Full Text Request
With the changes of economic situations both home and abroad, such problems as insufficient demand and deflation have appeared gradually after China's macro-economy achieved its aim of "soft landing"in 1996 the governme-nt's macroeconomy control has been switched over to the expansion of domestic- demand and the adjustment of supply structure from the restraint of aggregate dem-and inflation in the years 1993 to 1996. Correspondingly, China's monetary policy has also been shifted from the control of inflation to the prevention of deflation.From 1997 to 1999, facing so many unfavorable elements such as deflation, insufficient domestic demand, rising unemployment, increasing financial risks, di-fficulties in state-owned enterprises,reform,low rate in the public consumption and investment, China's monetary policy is of little clear effectiveness either in theaspect of the policy tools or in the transmission mechanism. This is the very back-ground on which the analyses and discussions of the thesis are based.The thesis first summarizes the research results which many economists havemade on relevant topics in recent years. Then it briefly introduces the theories on the effectiveness of monetary policy. What follows are the analysis of the econom-ic realities in China, the description of the contents of monetary policy and the eva-luation of its effectiveness, on the basis of which the thesis points out the major restrictive factors influencing the effect of monetary policy, namely, microeconom- ic body, policy tools, transmission mechanism and distribution of regional capital.The thesis in its last part puts forward some means and measures to increase the ef- fectiveness of monetary policy, which are as follows--speeding up interest rate mar- ketability reform, continuing to perfect the reserve requirements, enhancing open market operations,promoting the reform of state-owned commercial banks and enterprises, developing financial markets, actively guiding the public expectations, adjusting the disequilibrium of regional capital, seeking effective coordination of fiscal and monetary policy.
Keywords/Search Tags:Monetary Policy, Effectiveness, Policy Tools, Transmission Mechanism
PDF Full Text Request
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