Research On Alternative Selection And Optimization Of China’s Quantitative And Price-based Monetary Policy Instruments In The Post Financial Crisis Era

In different economic times，the effect of monetary policy depends on the rightchoice and flexible use of central bank’s monetary policy instruments.While，differentmonetary policy tools have different regulation effect on macroeconomic variables.Scholars pay more attention and give more discussion to quantitative tools and priceinstruments， which is a important classification of monetary policy instrument.Especially in the Post financial crisis，the socio-economic situation has undergone thechanges and development from recession to recovery and then prosperity. Based oninternational experience combined with China ’s national conditions， to study theeffectiveness of these two types of monetary policy instruments for the selection andoptimization of monetary policy instruments as well as the formulation andimplementation of monetary policy has important practical significance.This paper first describes the effectiveness of monetary policy and transmissionmechanism of monetary policy， as well as the inherent links and the functioningmechanism between the quantitative and priced monetary policy tools from thetheoretical level. It makes us have a clear graps that monetary policy tools impact theultimate goal by acting on the intermediate target. In addition，the paper also instoducesoperating environment of China’s monetary policy instruments at home and abroad inthe post-crisis era. Then，from the practical level，the paper comparatively analysesspecific use of monetary policy tools from domestic and foreign respectively，and drawsthe inspiration to China. Next， from the empirical level，the paper espectively adoptsunit root test，cointegration test，establishing VAR model，variance decomposition totake a in-depth comparative study about the effectiveness of quantitative instrumentsand price-based instruments in the two periods which is the easing monetary policy of2008-2010and the prudent monetary policy of2010-2013， drawing the preferredoutcome of the two monetary policy tools. The empirical results show that：At present，whether our economic in a recession or in the prosperity，the overall regulatory effect ofquantitative monetary policy tools are superior to the effect of the price-based monetarypolicy instruments. Especially the statutory deposit reserve policy is the most significant and effective tool，followed by the credit policy. Due to the open market operationsfocus on fine-tuning and presetting，so its effect is poor compared with the first two.They significantly emphasis on the ultimate goal in economic growth. Howerver，as therepresentative of the price-based monetary policy instruments，interest rates has becomemore prominent over time to contribute to the ultimate goal in the price level. Finally，from a realistic level， the paper puts forward all kinds of effective measures andcountermeasures to optimize monetary policy tools. And China’s monetary authoritieswill ultimately promote the general trend of monetary policy instruments that it willoccur change from the quantitative tools to price-based instruments.