A Comparative Study Of Two Types Monetary Policy Effects In China

Monetary policy refers to a central bank to achieve the economic goals under a specific period of time,using various tools to adjust the amount of money,market interest rates,exchange rates and thus affect the total demand,making the macroeconomic operation towards the development of the target Policy initiatives.The healthy development of national economies is closely linked with the formulation of monetary policy.Since the global financial crisis in 2008,in order to cushion its impact on China's economy,the Chinese government and the People's Bank implemented a series of initiatives aimed at scouring economic fluctuations,preventing economic risks and financial risks.At present,China's economy is still facing the growth rate shift,structural adjustment and pre-policy digestion under the three stress,and showing a cyclical adjustment and some phenomenon and rules are different from the past.It shows mainly that economic growth is facing pressure,CPI growth at a low level,the number of new urban employment increased;On the other hand,the rapid growth of the past,the accumulation of contradictions and risks highlighted,the decline in total imports and exports,investment growth is weak,some industries overcapacity and so on.And the internationalization of the RMB is getting higher and higher with the development of economic;the financial disintermediation is becoming more and more serious.In this context,it has great significance to have a comparative research combined with the economic operation of the status quo,China's monetary policy volume and price of the two monetary policy effects to develop a reasonable monetary policy as to achieving stable economic growth,speeding up the process of-marketization and financial reform.This paper first systematically combs the theory of monetary policy,especially the various types of price.And then,reviewed the implementation of China's monetary policy.Then,the IS-LM-PC model is extended to introduce the interest rate function,and the SVARMA model is established to carry on the empirical analysis.On this basis,the impulse response and the variance decomposition method are used to carry on to validate and analysis the effect of the quantitative monetary policy and the price monetary policy.The empirical results show that although the quantitative price-based monetary policy can stabilize the economic fluctuation effectively,there are some differences,mainly as follows:(1)From the aspect of regulation and control,the price-type monetary policy controls the output and inflation is better than quantitative monetary policy;(2)In the control of the lag point of view,the price of the tool to control the macroeconomic,the influence to output and inflation reach the peak in the first four and third stage,while the effect of price-type monetary policy is not;(3)In terms of duration,the effect of quantitative monetary policy on macro economy is significantly longer than that of price,and the effect of price-based monetary policy on the macro-economy is longer than that of price until the 20th stage.There are some suggestions at the end of the article.