Utilization And Effect Analysis Of China’s Monetary Policy Instruments Under The Background Of Financial Crisis

In the modern market economy, the central bank’s monetary police operation is one of the most important means of a country’s macro adjustments and controls. The outbreak of the financial crisis in2008has led to economic recession of whole world sharply, and every county’s central bank rolled out monetary policy to against crisis, a series of tradition and innovation of monetary policy instruments’use reduced the negative effect of economy to some extent which was brought by financial crisis. During this period, China’s central bank implemented the loose monetary policy appropriately, and use a series of monetary policy tools effectively, especially the reserve requirement, interest rate, open market operations to lessen the impact and influence of financial crisis. To analyze deeply our monetary policy tools’ utilization and effect under the background of financial crisis not only has high realistic significance in the practice of China’s monetary policy, but also has high academic value in researching about the transformation of the monetary police framework in crisis and the innovation of monetary police instruments.This article uses monetary policy instruments of our country as the research object, and uses normative analysis on the whole. The dissertation is composed of7chapters. Chapter1is an introduction, puts forward the research background, research purpose, research significance, the emphasis and difficulties of the article. Chapter2organizes the literature in monetary policy instruments from both at home and abroad, and makes the corresponding reviews. Chapter3summarizes the monetary policy instruments’utilization of Federal Reserve, the Japan central bank and the European central bank under background of the financial crisis, and provides some experience for us. Chapter4analyzes the evolution process of monetary policy tools in our country before financial crisis and the utilization of monetary policy instruments in our country after financial crisis. Chapter5is the key of the article, listing important economic indicators, that is GDP, CPI, unemployment rate and balance of payments, by comparing the changes of this four group indicators of our country and foreign major developed economies since the financial crisis, and our country before and after the financial crisis, concludes that the use of monetary policy instruments in our country has strong effectiveness. Chapter6points out the challenges of monetary policy instruments at present, including the world economy challenges and domestic economy challenges. Chapter7proposes improvement measures of China’s central bank in deposit reserve ratio, open market operation, interest rate liberalization, RMB exchange rate reform and rediscount policy.