Study Of The Effectiveness Of The Behavior Of Open Market Operations

China entered WTO in Dec.2001, according to the promise when enter WTO, five years later, we must completely cancel the region limit for foreign capital bank, the non- carefulness limit measure about property rights, management and establishment form for foreign capital banks. We must completely keep promise in finance by the end of 2006. In order to solve the difficulty of open market operation (OMO), greet world economical finance competition and challenge, the People's Bank of China has been issuing centre bank paper as the tool of OMO since 2003, and then OMO entered a new stage.The main methods of this articleThis paper uses economic theories and statistical techniques in the study of the effect of OMO. In order to draw supports from international experience of OMO, we also compare Chinese OMO with foreign OMO. The starting point of this articleAfter giving summarize about OMO including both domestic and oversea, unifying their dominant positions, the author starts this paper in a system vision.The main idea of this articleFirst, the author presents the theory of OMO, and then under the classification according to development of a country, we introduce some forms of OMO in the world and compare with each other, from which I hope we can find some laws and use them for us.Secondly, the author analyzes both the history and present of Chinese OMO powerfully, linked with world's advanced experiences the author points out problems and success it included, then divide the period with the central bank paper'first issued, the author analyzes the effect of the behavior of Chinese open market operation from 3 sides:1. The environment of OMO.