Operation Of The Monetary Policies For Tacking With The Financial Crisis:Experiences And Analyses

Based on the existing studies on the domestic and international monetary policies to deal with the financial crisis, this article is written to establish the theoretical basis for tackling with the financial crisis, provide historical experiences of the operation of currencies. Notably, this article shed some light on the monetary policies of the U.S. government,and also on the measures adopted by Chinese government during the financial crisis, as s a result of which some discussions and conclusions are put forwarded.To illustrate, the definition of the financial crisis is explained and the traditional view of the monetary policy conduction theory is pointed out in four aspects of interest rates, assets, exchange rates and credit, respectively. Then some empirical analyses are conducted based on the famous Great Depression in the United States and the Japan Heisei foam which pointed out that the monetary policies played a pivotal role in preventing the financial crisis. Moreover, the Subprime mortgage crisis in the year of2008is explained in details from its incentives to its actual causes and also the monetary policies of the U.S. government are illustrated. To establish a coherent logic, the effects of financial crisis on the development of Chinese economy are showed. Based on the analyses of the macroeconomic performance of China, the applications of the monetary policies by the Chinese government are explained, showing that the reasonable release of the liquidity contributed to the healthy development of the Chinese economy in the content of financial crisis. Lastly, some effective measures are pointed out to enhance the ability to dealing with the financial crisis.To conclude, the2008financial crisis brings about a lot of inspirations for the Chinese government.It also accumulated adequate experiences for the economic development in the future. In order to improve the ability to cope with the crisis, first of all, the overlapped parts of the monetary and fiscal policies should be well managed so that they can corporate with each other coordinately. In case of the further development of inflation, effective financial policies should be introduced to lower the consumers’ inflation expectations so as to maintain the health of economy. Secondly, since the development of financial industry in China is still in the initial stage, correct guidance and supervision can lay a solid foundation for forming a well-developed financial environment in China. Moreover, the establishment of the financial regulators and some relevant rules can effectively against speculation, build up high financial defense, and thus prevent the impact of foreign financial tsunami. Last but not the least, to strengthen the coordination of the international economy and to improve the voice right of Chinese government in the international financial market are meaningful in rising the China’s economic status, effectively maintaining economic stability, and in tackling with the financial crisis.