The Research For Independence Of China's Central Bank

The central bank is a special financial institutions,Financial institutions in the dominant position in the system.The central bank is not only control the money supply,and be responsible for the formulation and implementation of monetary policy of the country,but also shoulders the mission to ensure the long-term stable economic growth,and to supervise and manage the financial sector and financial markets.The central bank to stabilize the currency as the top priority,can be restricted role of the government's inflation,ensure that the monetary policy and macroeconomic stability.Central bank independence is the central bank independently to formulate and implement monetary policy,meanwhile,at the same time by the authority or government guidance in this the author believes that the central bank independence includes the following aspects of content.Therefore,personally I think the four aspects is covered by independent of the central bank: organizational independence,personnel independence,political independence,financial independence.It has a history of more than three hundred years for central bank form birth to now,with the development of history,the function and institution innovation is reforming and innovating,and the influence of central bank is deepening.Especially since the 1980 s,it has greatly improved for the position of central bank.The central bank,as the only one financial institution to control the money supply and the formulation and implementation of the national monetary policy,as for the special status,it has brought to the attention of the society from all walks of life.In the early of 1980 s,the world began to re-examine the independence of the central bank,in order to maintain steady economic growth,countries began to enhance the independent of the central bank.China is not exceptional also,from the reform and opening up has been developing so far,have constantly strengthened the independence of the people's bank of China.The early reforming and opening up,China's central bank system preliminary establishing,independence of the people's bank of China.It has gave the legal statue of the people's bank of China of1986 management regulations of the people's bank in the form of administrative regulations,it's when performing functions independently of the fiscal,independent of planning and economic department,Independent of the local government.In 1995,the principle of central bank independence is also reflected in the people's bank of China.In 1998 the people's bank of China dropped the original province branches,set up the nine regional branches,reduced local government of the people's bank of intervention.In 2003 began to set up the China banking regulatory commission,the separation of functions of part pf the people's bank of China from then on and to focus more of formulate and implement monetary policies,greatly improved the central bank independence,complied the trend of the world to strengthen the central bank independence.In July 2005,the implementation of the RMB exchange rate formation mechanism reform.enables the people's bank of china to set up a more independent monetary policy,and more effective macroeconomic regulation and control,greatly improved the independence of the central bank.And Mr.Zhou's second term,and concurrently hold the position of the CPPCC national committee.these reforms have greatly enhanced the independence of the central bank.But in recent years,the society has exposed many problems within the financial system,a line of three to the regulation of the financial system,and huge fluctuation in the stock market last year,the deepening reform of the independence of the people's bank of China cannot be ignore.This article is based on the connotation of the central bank independent,this article discusses the necessary of central bank independence analyzes the necessary of the central bank independence.To the central bank independence,on the basis of the theoretical research and empirical research with the GMT and GWN index to measure the independence of the people's bank of China,the Japanese central bank independence are documented in the literature in recent years,higher index,but also has the very big disparity with the fed's independence index,it is concluded that the independence of the people's bank of China was increasingly strengthen from reforming and opening up and the improvement of China's central bank independence has much space.Through using high independence of the fed,independence lower the history change of the bank of the Japan,and the independence of forms according to status quo of our country's state of the comparative analysis and put forward the policy suggestions of improve the independence of the people's bank of China,such for in the relationship between the state council and the central bank,in a board member of the central bank increased the proportion of financial experts,extend their term of office,increase the transparency of the central bank monetary policy and so on,It makes economic system basis for the healthy and stable development of China.