Intermediate Target Of Monetary Policy In China To Study

Seeing from world, the evolvement history of the intermediate targets of the monetary policy is really also the rise and fall history of the western mainstream economics. From interest rate to the money supply to the inflation targeting that recently rise, which reflects the trend of the economic variety in world with a particular way.From currency to the load scale to the money supply, which founded the evolvement history of the intermediate targets of the monetary policy in China. With the historical standpoint, the choice of these intermediate targets contained rationality and inevitability. And in recent years, the deflation in China not only caused some scholar doubting the money supply target, but also caused a big discussion about how to choose the intermediate target of the monetary policy. Have the currency supply completed its task as the intermediate target? Is there another variable fitter than it? These problems are the focuses of the discussion and the intention of this paper is to find a right answer to them.In the introduction, some common theories about the intermediate targets of the monetary policy are introduced. It is indispensable for guaranteeing the integrality of the study.Chapter 2 and chapter 3 exhibit the evolvement history of the intermediate targets of the monetary policy in the west and China. At the same time, the objective comment will tell us two: The first, a perfect intermediate target of the monetary policy is nonexistent; The second, choice and exist of an intermediate target can not get away from the economic and financial condition in the country.Chapter 4 is important. In this chapter, you will see: The first, the applicability of the money supply is lower and lower as the intermediate target of the monetary policy; The second, the liberalization of the interest rate is the precondition of the interest rate being chosen as the intermediate target; The third, the inflation targeting is unfeasible at present in China. Certainly, the reasons are given and the empirical methods are mainly used in this chapter.The last chapter consists of the conclusion and some suggestions. The conclusionis very simple: Under the current economic and financial condition in China, the situation of the money supply as the intermediate target should be continued. At the same time, with the liberalization progress of the interest rate, we should enhance the theoretic study and policy simulation, so that we substitute the money supply with a fitter one at a ripe time.