A Study On Monetary Policy In Supply-side Structural Reform

In the past,our country took economic growth as its main goal,and boosted its economic growth through the use of debt management through demand management.However,in recent years,the economic growth of our country is slowing down.The role of demand management in stimulating the economy is gradually diminishing.Problems in China's economic structure and the development of China's economy have entered a "new normal." Therefore,in 2015,China has proposed supply-side structural reforms to cope with the new normalcy of the economy and increase our country's economic quality and total factor productivity through expanding effective supply so that our economy can develop in the long-term and stable manner.After the supply-side reform was put forward,China chose loose monetary policy to cope with.This paper analyzes the effect of monetary policy after the reform of supply-side reform in our country and concludes that our monetary policy has not achieved the expected results well.Therefore,the direction of monetary policy requires our further consideration and discussion.By analyzing the factors that affect the effectiveness of monetary policy and discussing the loose monetary policy and tightening monetary policy respectively,we conclude that China should adopt a stable monetary policy,create a stable financial environment and play the role of "serving the real economy,guarding against financial risks and deepening financial reform." And give the monetary policy suggestions from the three aspects of the target choice of monetary policy,the choice of monetary policy and the choice of monetary policy tools.The ultimate goal of monetary policy should return to a single goal,and the target of operation should be shifted to the price type.The channel of monetary policy should control the channel of credit and prevent funds from being injected into the real economy.The transmission mechanism should gradually shift from credit conduction to interest rate transmission.On the one hand,it is necessary to appropriately reduce the deposit reserve ratio and give commercial banks the right to operate independently.On the other hand,it should make flexible use of open market operations and increase the flexibility of liquidity adjustment.