China’s Monetary Policy Tool Research

Due to changes in the international economic situation, China’s monetary policy from the end of2007to prevent economic growth from becoming overheated, to prevent prices from rising structural evolution into significant inflation target from a tight monetary policy to sustaining economic growth, anti-deflation easing monetary policy. The economy is constantly changing, whether it is a response to the the CPI continued rise in inflation and the current global economic crisis caused by the subprime mortgage crisis, require the central bank the flexibility to use monetary tools. However, how to select the monetary policy tools, whether the play to give the public good notices role and effective macro-control, it is particularly important.China’s monetary policy tools as an object of study, analysis of the existence of the problem of the selection and use of monetary policy tools rediscount, the statutory reserve requirement, the benchmark interest rate, open market operations tools, on this basis, to explore China’s monetary policy tool of choice, the consequences of the problems with the use of reason, shows that major deposit reserve ratio adjustment is difficult to estimate; deposit reserve ratio by operating strength increases; difficult to expand the size of the government bond market; central bank bills issuance costs; secondary market interest rate inversion causes issuance of central bank bills is difficult; monetary policy of inefficient operation target; substantial increase in the degree of monetary tightening; play the role of monetary policy by the many factors that affect the eight reasons.This paper discusses the use of the experience of the U.S. central bank’s monetary policy tools and its revelation, the U.S. central bank’s monetary policy tools of monetary policy tools to use Inspiration:innovative financial instruments and sound financial markets on our experience; promote the interest rates and market linked; emphasis on monetary policy to guide and purification of the market environment, and so on.Better choice in order to promote China’s monetary policy tools and application, this paper proposes a series of measures to clear the good and the positioning of the function of the monetary policy tools; promote the innovation of China’s monetary policy tools; coordination of monetary policy tools to select with; improve the monetary policy tools the use of the external environment.