| In December2009, the CPC Central Committee and the Central Economic Work Conference held on:one of the main tasks for economic work in2010is to properly maintain stable and rapid economic development, restructuring the economy, the relationship between the management of inflation expectations among. In March2010, the Third Session of the National People’s Congress, Premier Wen Jiabao’s government work report to ensure growth., adjusting structure and managing inflation expectations as the main content of the macro-control of the next period, so that on the management of inflation expectations to become one of the priorities of our financial macro-control.2010the People’s Bank of China pointed out that in the regular meeting of the Monetary Policy Committee in the second quarter, is still very arduous task of managing inflation expectations. Managing inflation expectations, not only has important practical significance and policy significance, at the same time reflects the central management pay more attention to macro-control prospective.Inflation is expected to the public in advance of future inflation changes in the direction and magnitude of the estimates and judgments. The expected impact of public investment and consumption and other economic decision-making in the modern market economy, economic regulation of the central bank is largely expected to guide the public through the implementation of its policies and measures to achieve. Rational expectations theory is that economic agents before making a decision, always predict future values of economic variables relevant to the current decision-making based on the disposal of all kinds of information; economic agents are unsure of the future, so the only plan and decision-making on the basis of future expectations. Since the effect of monetary policy depends on the public that the policy is expected, if the central bank’s policy intentions clearly and accurately communicated to the public, then monetary policy will be generated on the expectations of the public. Explanation of the central bank’s monetary policy is to say that even more than the behavior of the policy itself can affect the psychology and behavior of the people in the market. With the expansion of the scale of the financial markets, businesses and residents are widely involved in the investment and trading activities of financial products, financial markets also kinds of interest rates, exchange rates, changes in asset prices and asset structure adjustment and the wealth effect channel for conducting monetary policy. Financial markets in the conduction of monetary policy depends largely on market participants expected future cost of capital and asset price trend, the guidance and management of market expectations naturally become an important part of effective implementation of monetary policy. The central bank only continue to strengthen and improve communication with the market players to effectively influence and manage market expectations, in order to improve the effectiveness of monetary policy.Historically, the central bank did not want to open its business operations, secretive as part of the central banking culture. Tracing the source, the secretive culture of the central bank from the lender of last resort mechanism. The early lender of last resort mechanism provides services including discount window, which necessarily involves the private information of the individual bank’s loan portfolio, however, one of the functions of lender of last resort mechanism to safeguard the public information for the banking system, so it is necessary confidentiality of the private information of the troubled banks. Monetary policy is likely due to bureaucratic rent-seeking behavior and monetary policy of the Central Bank of the more opaque the more effective monetary policy concept of the impact of these two concepts, it has been a lack of transparency.After80years of the20th century, people’s understanding of monetary policy transparency has changed. How fullest, accurate, timely monetary policy-making process and the results available to the public, has become a key element in the operation of monetary policy. In recent years, increasing the transparency of monetary policy has gradually become an international trend, represents a new direction for the development of monetary policy. Countries, the Central Bank of the reason why the transparency of monetary policy and pay more attention, mainly found in the practice of long-term policy, monetary policy transparency helps to stabilize inflation expectations, reduce market volatility. A usual practice of modern society is the separation of monetary policy from the government, entrusted to an independent central bank to perform. Need for greater autonomy of the Central Bank of the implementation of the social optimum target the central bank accountable to the public, while the public has its supervision and evaluation. To achieve this goal, an indispensable prerequisite for monetary policy to be transparent. Only in this way can the public on the performance of the central bank monetary policy based on certain criteria evaluation, which is the inevitable requirement of modern society with the independence of the central bank raised the. Some central banks to adopt inflation targeting "transparent monetary policy framework, which provides an explicit inflation target announced inflation forecast report. Many central banks will be released at the end of each time the Monetary Policy Committee meeting policy adjustment programs, and through the organization of a press conference or the form of a published record of the meeting to explain its policy, ideas; regularly publicly judged dynamic economic development, and at the same time to the community economic and inflation forecast analysis, etc.. This situation reflects both the progress made by the economists in the understanding of the monetary policy transmission mechanism, which also shows that the public demand for government administration and general public policy more open. |
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