Econometrics Study Of The Coordination Mechanism Between Macro-prudential Policy And Monetary Policy

After the finance crisis,macro-prudential policy becomes one part of the macro-economy policy toolbox of most of countries.The main aim of macro-p-rudential is to reduce the systematic risk and stabilize the business cycle,which can reduce the possibility of finance crisis.In the 19 th National Congress of the Communist Party of China,President Xi came up with building up a double-support of macro-prudential policy and monetary policy.However,the acade mia doesn't reach an agreement about the interaction between macro-prudential policy and monetary policy.Therefore,it's necessary to conduct a research about this problem,which can help us to make positive and effective policies.The macro-prudential policy our country has inplemented includes the CC B,the dynamic reserve and the LTV.This paper uses dynamic reserve system as the representative of macroprudential policy to study the coordination mecha nism between macroprudential policy and monetary policy.To study of the interaction between the macro-prudential policy and mon etary policy,this paper established a DSGE model containing reserve system.The model includes families,enterprises,commercial banks,central Banks and governments.According to budget constraints and optimization conditions of each department,we determine its behavior.At the same time by the balance sheet of commercial banks,we add reserve system into the model.In the numerical simulation of the model,this paper chooses technology shock and the non-performing loan ratio shock respectively to represent the no n-financial risk and entity risk.With the impulse response analysis of the general Taylor rule conbined with different reserve system and the dynamic reserv-e system combined with different Taylor rule,we get the following conclu-sion:a),macro-prudential policy has an obvious effect in controlling financial risk,but unobvious in non-financial riskt;b),under the background of the im-plem entation of macro-prudential policy,monetary policy considering regulating the financial risks is worse than general Taylor rule,the gap of the volatility level is not big,but under the general Taylor rule,economic system to reach a ne w steady state spends little time,which means that the macro-prudential policy and monetary policy in same direction,will not lead to better policy effect;c).macroprudential policies have little impact on the expect behavior of the a ctors in the economy.It also means that the implementation of macroprudential policies will only lead to small externalities,so there is no need to think to o much about the impact on the actor.Finally,this paper puts forward the policy recommendations: macro-prude ntial policy and monetary policy should be independent and pay attention to th-eir own goal,namely the macro-prudential policy for financial risk control,while monetary policy for non-financial risks control,which is able to achieve the optimal effect of policy.