A Comparison Of Price Stabilization Effects Between Central Bank Notes And Social Financing

Price is one of the subject that we pay close attention to for a long time, and monetary policy is a very important means of price regulation in our country, the selection and use of monetary policy tools is related to the achievement of transmission efficiency of monetary policy and price level. At present, there have been numerous qualitative and quantitative analysis about monetary policy tools effect in terms of China’s economic growth. But literature of tools to the price effect is relatively less,the compare of tools for price regulation and control effect is more deficiency in the same economic environment.In this paper,we analyze the conduction mechanism of central bank bills and social financing scale,compare their effects of price stability. We drew a conclusion,through a combination of empirical and practical analysis,that the central bank bills control the price level through currency channel,and the effect of short-term price regulation is quite good. Social financing scale affects prices from the credit channel,it can effectively reflect price changes. In the short term,social financing scale can be effective in stabilizing prices,but there can be a certain time lag. Central bank bills is more efficiency than the adjustment of social financing scale.Both of them are limited on long-term price influence.This paper is divided into six parts:The first part describes the background and significance of this topic,research status domestic and abroad; the second part states the transmission mechanism of monetary policy and the basic theory of monetary policy tools; the third part analyzes the status of the central bank bill,its conduction path, short and long term price stability effect; the forth part analyzes the price relevance of social financing scale,the effect of short and long term price stability through theoretical and empirical methods; the fifth part of compare their effectiveness and efficiency on price impact; We propose appropriate recommendations in last part.