An Empirical Study On The Effectiveness Of Monetary Policy Instruments Under The Backgroung Of China's Economic Transformatin

As the main means of the country's macroeconomic regulation and control,Monetary policy instruments play a very important role in stabilizing the country's economic operation.At present,under the context of China's economic upgrading,the impetus of economic growth is changed from investment to innovation,monetary policy instruments are also changed from quantity to price.In the process of starting a range of innovative monetary policy instruments to adapt to the economic situation and to regulate liquidity,traditional monetary policy instruments have been somewhat inadequate to cope with the increasingly complex economic situation.Therefore,in the context of economic upgrading,the instruments and our thought of monetary policy should also be transformed.We should use new means in the way of regulation and increase innovation in the tools of monetary policy and enrich the basket of monetary policy instruments.The core of this paper is to analyze the effectiveness of monetary policy instruments and the optimized choice of monetary policy instruments under the background of economic transformation.The analysis of the effectiveness of monetary policy instruments in China will be beneficial to the monetary authorities to improve the effectiveness of monetary policy instruments and achieve the goal of macroeconomic regulation.This is very significant for the choice,implementation and optimization of monetary policy instruments in China.First of all,the paper analyzes the environment of monetary policy instruments and the challenges of the tools in the context of economic transformation.Secondly,the paper explains the effects of the monetary policy instruments according to the empirical analysis and explains the innovative monetary policy instruments' influence.Which consists of two parts,For the first part,the effectiveness of policy instruments,combined with the relevant system of our country,we choose the amount of money supply,the seven-day interbank lending rate as the variables of the intermediate targets,the final target variables of GDP and CPI as the monetary policy instruments,and the monthly data from January 2010 to September 2017 as the sample range.These variables are analyzed by the ADF test,cointegration test,Granger causality analysis,pulse response function,variance decomposition to analyze the relationship between money supply,interest rate and the output,price in China,the conclusions are as follows:(1)the application of monetary policy instruments in China has kept price stable and promoted economic growth to some extent,but its effectiveness is not strong.(2)the effectiveness of monetary policy instruments in China has shifted from quantity to price instruments.(3)money supply of different calibers have different effects on China's economy.(4)the impact of interest rate on the economy is not obvious.For the second part,about the regulation effect of the innovative monetary policy instruments,this paper analyzes the effect of the innovative monetary policy instruments since its implementation with the method of ordinary least square estimation.And conclude that the innovative monetary policy instruments is effective and has the advantanges of structural adjustment.Which also impels us to carry on the innovation of the monetary policy instruments.Finally,from the perspective of monetary policy theoretical framework,combined with the effect of Chinese monetary policy instruments implementation,the paper puts forward the policy enlightment of improving the effectiveness of Chinese monetary policy instruments and optimizing China's monetary policy instruments.