Research On The Multi-objective Effectiveness Of China’s Monetary Policy And The Coordinate Control Strategy

The coordinated development of multi-objectives of monetary policy is not only an important guarantee for the smooth operation of the economy, but also to accept the economic development requirements of the new normal. Since 2008 mortgage crisis of the USA triggered to the global financial crisis, for the buffer of the financial crisis on China’s economic impact and influence, Chinese government and monetary authorities in the implementation of a series initiatives aimed at smoothing economic volatility, prevent financial risks and financial risks. After the international financial crisis, the global economy is going into profound balance adjustment period,meanwhile China’s economy is in upshift, structural adjustment and three superimposed stages of digestion, and presents for cyclical adjustment,which is not the same as the new phenomenon and new laws. Mainly manifested as economic growth is facing downward pressure, but the amount of increase in consumer prices remain low, the employment situation is generally stable,and the increase in the number of new jobs in cities and towns. But on the other hand, the contradictions and risks of the accumulation of high speed in the past gradually highlight the decline in total imports and exports, investment growth is weak, some of the industry overcapacity was serious. There are risks in the financial field. These phenomena objectively require the coordinated development of the monetary policy multi-objectives.Firstly, the effectiveness of the multi-objective of monetary policy is studied by using Granger causality test. Through the effectiveness of monetary policy theory and the evolution of China’s monetary policy to sort out, to provide theoretical guidance and research foundation for the following research. And then using the stationary test,cointegration test and Granger causality test research on the operation of monetary policy tools(the statutory deposit reserve rate and one-year deposit benchmark interest rate) and the ultimate goal(economic growth, price stability, fully employment, international balance of payments and financial stability) betweencausality. The results show that the statutory deposit reserve ratio and the one-year benchmark deposit rate is the ultimate goal of monetary policy Granger reasons. That is, the goal of our country’s monetary policy is effective, and the effectiveness of multi-objectives of monetary policy is the premise and foundation of the research on the multi-objectives of coordinated control of monetary policy.Secondly, the theory and method of economic control theory is studied to study the coordination of multi-objectives of monetary policy. Based on the transmission mechanism of monetary policy system, based on the data from1995 to 2014,constructing a simulation model of the multi-objectives of monetary policy,testing the observability, controlability and stability of the model,which confirmed from another point of view the effectiveness of multi-objectives of monetary policy. At the same time, it shows that there is a coordination between multi-objectives of monetary policy, which provides a scientific guarantee and method guidance for the coordination control strategy of multi-objectives of monetary policy.Finally, on the basis of research on the coordination of multi-objectives of monetary policy, the control strategy of multi-objectives coordinated development of monetary policy is studied. Under the guidance of the inversion of the transmission mechanism of the monetary policy, the coordination control model of monetary policy is set up. Through the control of monetary policy ultimate goal of domain wave,observation operation tool evolution trend in the next ten years, found that the statutory deposit reserve rate and one-year deposit benchmark interest rate of the simulation values were lower the past five years data,which was published by the monetary authorities, and shows the overall downward trend in the next ten years.Based on the empirical study, this paper puts forward policy recommendations to improve the effectiveness of multi-objectives of monetary policy and promote the coordinated development of multiple objectives, in order to improve the level of social welfare and achieve sustainable economic development.