A Study On The Effectiveness Of The PBC's Open-market Operations Under The Control Of "Touble-pillar"

As a monetary policy tool,open market operation is favored by multinational currency authorities for its high flexibility and high autonomy.In recent years,in order to guard against financial risks,China has established a "double-pillar" regulatory framework of monetary policy + macro-prudential policy,giving more attention to open market operation.At present,China has initially accomplished the marketization of interest rates,and turned the market interest rate from direct regulation to guided regulation based on open market operation.At the same time,the Nineteenth National Congress decided to focus on the financial services for the entity economy.Based on this,the paper concentrates on the conduction mechanism of open market operation on market interest rates and the effectiveness of the impact on the real economy,and hopes to address the following issues:(1)What is the transmission mechanism of open market operation in China,and how effective it is to the real economy?(2)How does the market interest rate react to the open market operation?(3)How do traditional tools and new tools affect market interest rates in terms of "quantity" and "price"?The statistical analysis of interest rates yields several facts:(1)The market interest rate trend has a strong correlation with the open market operating interest rate;(2)The function of the new open market operation tools represented by the lending facilities needs to be further improved;(3)China's open market operation has obvious characteristics of counter-cyclical regulation to the macro-economy.The conclusions include:(1)Under strict regulatory conditions,price-based regulation of open market operation can effectively guide market interest rates,but "quantity" does not play a significant role;(2)Open market operations are effective for the real economy,but the transmission channels are still not smooth enough;(3)The lending facilities have become an effective complement to the traditional open market operating tools,but they still need to be further improved.The innovations of this article are:(1)Incorporating new backgrounds,introducing new tools,selecting new indicators and data,and using mathematical model as theoretical support;(2)Through empirical evidence,the paper proves the logical chain of the open market business,which is operating interest rate? market interest rate ? real economy.