Monetary Policy And Output Relations

After 90's, China Economy had some new developing stage. And monetary policy also had changed with change of the whole economic situation. Monetary policy can be divided into three periods. The first one began in 1993. From that time, the Center Bank made out and implemented moderation tight anti-inflation monetary policy. The second period is from 1997 to 2001. In this period, the monetary policy was level-headed policy, which was different from the first period. The last period started from 2003 and till today. In this stage, the level-headed monetary policy was still on the board. At the same time, China economy can be saw fluctuation. We use the CPI to reflect the whole inflation situation. From 1992, CPI begun to increase and it arrived at peak, which was 24.1%, ant the mat index was also the max. In the recent 13 years. After some year's effort, the CPI decreased after 1997. In 1997, China economy realized"soft landing"successfully, China begun to go far away from inflation. But in the following years, the demand showed some degree insufficiency. The target of China economy changed into enlarges domestic demand from control.In foreign economics field, a lot of people like to discuss the relation between monetary policy and output of a country. On the base of interest on this problem, I want to know the really relation of monetary policy and output of China in the recent 13 years after reading a lot of literatures and papers.The first part of my paper is to summarize literature. The foreign research showed consentaneous idea on the short period relation between monetary policy and output. That is there has relation between monetary policy and output in short period. But until now, there still had tow against opinions on the long period relation. Some think they do not have any obvious relationship, but others think they have obvious relationship.