The Analysis Of The Treasury Cash Management’s Impact On Monetary Policy In China

To carry out the treasury concentrated payment system reform in 2001, along with the steady growth of our country’s economy, the treasury deposit shows a tendency of rising and volatile, the government expects to alleviate this contradiction by the treasury cash management. The treasury cash management work in our country, to speed up the modernization of the treasury management system, reduce the amount of idle cash held by the government, reduce the government’s borrowing needs, ease the treasury cash revenue and expenditure disbursements of volatility, promote the development of money market, reduce the cost of government debt, etc., has important practical significance. The current our country to the treasury cash management challenges faced with at least two aspects:firstly, is to the treasury cash management and coordination of the monetary policy operation, the treasury cash management operations often forcing central Banks to hedge, exacerbate the treasury stock volatility, and may mislead the from all walks of life to the judgment of the monetary policy. Secondly, large-scale implementation of the treasury cash management operations will impact the currency markets, commercial Banks using the treasury cash management operations to take deposits, brings new problems to the central bank credit regulation, but treasury bonds pledge is insufficient and uneven distribution, also limits the amount of the treasury cash management operation. Under such background, the research and analysis of the treasury cash management in our country on the impact of monetary policy is very necessary.This paper summarizes the treasury cash management of the impact of monetary policy on the basis of related literature, first of all from the perspective of theory analysis of the treasury funds influence on monetary policy, then from two aspects of deposit in commercial Banks of the treasury cash impact on money supply and the treasury cash to buy back the treasury bonds impact on money supply to elaborates respectively, and then by means of an empirical model to infers the treasury cash management in our country on the impact of monetary policy, the relevant data are generalized impulse response analysis and variance decomposition structure such as quantitative analysis. The empirical results show that the commercial Banks to the treasury cash deposit scale has positive influence on broad money supply relationship.Finally, this paper puts forward the corresponding policy recommendations for our country to carry out the treasury cash management according to the international experience, defined the direction of further research.