Research On The Effectiveness Of The New Monetary Policy Of The Central Bank Of China

After the outbreak of the financial crisis in 2007,the central bank introduced all kinds of innovative monetary policy to revive the economy,with a more pronounced effect.According to international experience,under the background of overcapacity,multiple structural imbalances,the weakening of the traditional monetary policy effect,in order to achieve structural adjustment of the economy,the stability of the financial system.China’s central bank has created Short-term Liquidity Operations,SLO and Standing Lending Facility,SLF and a series of directional adjustment tool.After frequent operation and practice,the effect is obvious.Based on the above background,this paper thinks that the connotation of new monetary policy are unconventional monetary policy category,mainly adopts the method of theoretical analysis and empirical analysis combining qualitative and quantitative research on the validity of the new monetary policy.first of all,summary and analysis of relevant literature and theory.Based on the theory of monetary non neutrality,to research on the effectiveness of the new monetary policy of the Central Bank of China.Secondly,summary the central bank using characteristics and effects of new tools of monetary policy since 2013,based on China’s practice and relevant economic theories,the framework of China’s new monetary policy theory system is constructed from the aspects of tools,transmission mechanism,intermediate goals and final goals.Finally,based on the structural vector auto regressive SVAR model and simultaneous regression equation,According to the intermediate target,the new type of monetary policy is divided into the interest rate as the intermediate target of the new monetary policy tools and the money supply as the intermediate target of Directional drop reserve ratio,the new monetary policy tools according to different period is divided into short-term and long-term,within the framework of the theoretical system constructed conduct an empirical test.The results show that the new monetary policy tools not only increase in the amount of credit,from the price formation of interest rate corridor ceiling,guide the short-term market interest rates and long-term market interest rates,and long-term guiding effect is more significant;monetary policy has targeted RRR cuts increase Small and micro businesses loans effect is obvious,but in the regulation of rural credit amount change also need other policy collocation.This paper argues that in order to make the model more effective monetary policy,the need to further improve the system of the central bank monetary policy framework,clear the weak link in the conduction process,especially the sensitivity of commercial banks in response to the central bank’s monetary policy is very important,this proposal of monetary policy operation not only to collocation short-term and long-term monetary policy can also be other collocation related policies,such as the difference of capital adequacy ratio of alienation,and suggested the government to implement a fiscal policy support,in order to better achieve the policy intent.