A Study On The Impact Of External Impact Factors On China 's Monetary Policy Rules

The financial integration accelerated the opening of the market and the flow of international capital around countries. However, the change of the entire financial operating environment on which the implementation of monetary policy depends makes the formulation of economic policy and the process of monetary policy difficult. In the process of making monetary policies, the governments should not only consider the domestic macroeconomic factors, but also pay attention to the international commodity price changes, the international capital flows and exchange rate fluctuations. In response to external impact factors, the operation of the monetary policy are increasingly frequent in our country in recent years. Monetary policy rule is a guide for the operation of monetary policy, it can not only help the central bank formulate a scientific and effective monetary policy, but provide a judgement and standard of monetary policy implementation effect with the public, the importance of monetary policy rule in the macroeconomic operation is also growing.On the base of theoretical research, and the clarify of the transmission mechanism of external impact factors, we need to have an empirical testing on the two tools which added external impact factors, and finally it has a conclusion that the indicator of Taylor rule for monetary policy is more significant, then we gives some policy suggestions with the economic reality.Generally speaking, this text focuses on the impact of the external impact factors on China’s monetary policy rules under the basic framework of economics researches, the extensive data collection and the practical problems in the Chinese economy. The full text is divided into seven chapters, and the specific content is as follows:Firstly, the author gives a summary to the full text, and this part has three aspects: especially the meaning of core concept, then the author has a theory review about the external shocks and monetary policy rules. Then the author has a research about the elements of the transmission mechanism of external impact factors, when the transmission mechanism is clear, we can formulate the foundation of the factors for the next part in the paper. After the transmission mechanism of external impact factors and the classification of the goal monetary policy rules and tool rules, we weill have a empirically test on the McCallum rule and Taylor rule and have a basic conclusion which the indicator of Taylor rule for monetary policy is more significant. Lastly, the author will give a conclusion and some policy recommendations.