Analysis And Research On The Effectiveness Of Monetary Policy In China In Recent Years

Ⅰ.The research purpose and significance in this paperIn this paper, the effectiveness of Chinese monetary policy is explained and judged quantitatively and qualitatively by reference to the theory of the effectiveness of monetary policy developed by western economists. Then suggestions and ways to improve were given by analyzing the inner cause to the weak effectiveness of monetary policy in China.It is truly vital to make further researches in this subject especially when china suffered the deflation. Since the beginning of 21st century, the relationship of aggregate supply and demand has changed oppositely to the before. Aggregate supply surpassed gross demand, what's more, the price index dropped to a low level and the investment and consumer demand stagnated. In order to overcome the deflation, the central bank of China took many measures, which included lowering the interest rate of savings and lending, canceling the control of loans size and so on, but the central bank has achieved few success. Therefore it was urgent to do some researches in the real mechanism of the economy operation and find in the real reason of the weak effectiveness of monetary policy.Ⅱ.The outline and logic structure of the research paperIt is necessary to understand the concept of "the effectiveness of monetary policy" fully and clearly. This concept can always be understood in three aspects: quantity, quality and time stagnation. There are two different views about this subject among western economists. So I will introduce, analyze their views and points respectively and systematically. Then with the reference to the above theory, I will position the monetary policy of the central bank in recent years and appraise it impersonally. After that I drew a conclusion that the so called steady monetary policy was expansionary monetary policy. Qualitatively speaking, the policy is effective; on the other hand, the effectiveness is weak from the point of quantitatively analysis. On the base of it, I analyzed the reasons that lead to the weakness of monetary policy from different aspects. In the last chapter, some feasible policy suggestion and measures were given.As to logic, each chapter keeps logic relationship with its previous one, and takes over from the past and set a new course for the next pages. The same is true for the paragraphs. The logic analysis frame on this thesis is the conduct procedure chart of the monetary policy adjusts and control of economical operation. Under the guidance of the logics frame, to analyze entirely the problem existing in operate system important link, it is too the analysis on the concrete reason that causes our country monetary policy validity weak.Ⅲ.Main content and view of this thesisThis thesis is divided into fore chapters.The first chapter is divided into three parts. The first part mainly details monetary policy validity concept at angles of nature and quality and time., the second part mainly analysis the total view of Keynes school about monetary policy validity; the intensity of the monetary policy result in different background of economy; the general factors to affect the monetarypolicy result; the result of financial policy is compared with the result of monetary policy in different periods; the operate Suggestion on monetary policy. The third part introduces mainly a series of views and monetary policies operation suggestions of the monetary doctrine school about monetary policy validity. At the same time gives a comment on the main views of "the two big school". Chapter two introduces three questions mainly: Practice of monetary policy of our country in the past several years is divided into several stages and determined the nature from two aspects of the stage and nature first; the second question is giving a objective appraisal of the monetary policy validity at two angle of the nature and the quality; the third question is to describe summarily some reasons that causes our country monetary policy validity weak.Chapter three is a key cha...