Analysis Of The Effect Of Statutory Reserve Policy Under The Background Of Prudent Monetary Policy At China's Present Stage

In 1984,according to the needs of economic development and the practical experience of other countries,China established legal deposit reserve system which was fit for China's national conditions.The initial legal deposit reserve system,established by the central bank,is dominated by the administraton,and the funds raised were more used by the central bank for the national project construction.With the rapid development of market economy and reform and China's opening up,market may be out of control and difficult to achieve balance,the economy tendency does not fully comply with the China development,the central bank began to use this as a monetary policy tool to maintain the stable operation of the national economy,then the statutory deposit reserve policy has become the main monetary policy tool of macro control in china.From 2007 to 2016,it has been adjusted 42 times in a short period of 10 years,basically adjusting up and down by 0.5%.Under the background of prudent monetary policy,the statutory deposit reserve policy is still the main tool to achieve price stability and to maintain stable economic growth targets.From the beginning of April 2014,the central bank launched a new monetary policy tool-targeted RRR cuts policy,to achieve the goal of structural adjustment.The central bank hopes to use this policy to encourage credit funds to the "three rural",small and micro enterprises.So far,the central bank has targeted the implementation of the 8 targeted RRR cuts policy.This article mainly uses theoretical analysis and empirical analysis to study whether the target of China's monetary policy is realized or not,how effective the statutory deposit reserve policy,whether to achieve price stability and to maintain stable economic growth targets;whether New carried targeted RRR cuts policy is effective and able to optimize the structure.The results of this study can provide reference value for formulating regulatory policies to a certain extent,and achieving the policy objectives more effectively in the future.The main contents of this paper include the following six parts:Chapter one,introduction.Under the background of the statutory deposit reserve policy,since 2011,whether the prudent monetary policy and targeted RRR cuts policy is able to realize the target or not,elaborating the research background,significance,and predecessors statements on the related research,finally explaining the innovation and shortcomings of this pap.The second chapter,the theory and practice of the statutory deposit reserve policy.This part first carries on the brief analysis to the legal deposit reserve policy connotation,lays the theoretical foundation for the following analysis.Then the statutory deposit reserve policy transmission mechanism is expounded,the central bank adjust the statutory deposit reserve ratio,the money multiplier has the opposite direction of the multiple changes,then the money supply M2 changing,bying the interest rate affecting consumption and investment spending,finally effecting CPI and GDP,realizing the economic policy objectives..The third chapter,the characteristics of the statutory deposit reserve policy under the background of the current prudent monetary policy.This part first carries on the brief introduction to the connotation,background and objectives of the prudent monetary policy,laying the theoretical background for the follow-up policy effect analysis,and then analyzes the characteristics of the statutory deposit reserve policy under the background of the current prudent monetary policy.The fourth chapter,analyzing the total effect of the statutory deposit reserve policy.According to the statistical analysis and quantitative analysis,knowing the statutory deposit reserve policy transmission mechanism is effective at this stage,bying its effect on the intermediate target and the ultimate goal to determine the statutory deposit reserve policy effect.This chapter analyses five variables of the RD,interest rates,M2,CPI,GDP,observing the total effect analysis of the statutory deposit reserve policy.According to statistical analysis and econometric analysis,it is concluded that the change of deposit reserve ratio has a significant effect on the interest rate and CPI,and has no obvious effect on the money supply M2 and GDP.The fifth chapter,analyzing the effect of structure adjustment of targeted RRR cuts policy.In 2014,launching targeted RRR cuts policy,the policy effect has become a hot topic in modern society.This chapter through statistical analysis and econometric analysis,studying the effect of targeted RRR cuts policy,the results of the study show that targeted RRR cuts policy did not fully play the guiding role effectively,monetary funds did not effectively penetrate into the "three rural" and Small and micro businesses,to some extent,there is no use to adjust to the structure.The sixth chapter,conclusions and countermeasures.Through the theoretical analysis and empirical analysis in the aboved several parts,coming to the conclusion that the implementation of the statutory deposit reserve policy is effective at China's current stage,having a obvious effect in price stability,having no obvious effect in easing the downward pressure on the economy;targeted RRR cuts policy has not reached the expected target,the release of funds do not have effective access to agriculture and small and micro enterprise.Finally,according to the relevant conclusions,some suggestions are put forward to improve the implementation effect of the statutory deposit reserve policy and the directional RRR policy in china.