The Influence Of The Innovative Monetary Policy Tools On The Currency Issue Under The New Normal State

The main channel of currency issuance in China was developed from reloan to foreign exchange in 1994.Since 2012,the "double surplus" trend weakened,the growth rate of foreign exchange reserves declined,and the pressure on money supply was lightened,in this way,the money releasing channel of central bank has gradually shifted from passive single funds outstanding for foreign exchange in the past decade to the active multichannel.With the completion of China's interest rate marketization reform,under the domestic background of slower economic growth,insufficient liquidity of the real economy,changing social financing structure and rapid development of financial innovation,to stable economic growth,Chian released innovative monetary policy tools,trying to transmit monetary policy intention to real economy,adjusting monetary release channel by guiding a long-term low interest rate and direct liquidity injection.Meanwhile,it plays a very important role in adjusting economic structure and promoting the livelihood of the people.Thus,researching the influence of the innovative monetary policy tools on the currency issue under the new normal state means a lot.The first part is the introduction,which mainly analyzes the background and significance of the topic.The second part is a summary of the research,summarizing the domestic and foreign research on the currency issuance channel and distribution.The third part is about the changes of China's currency distribution channels,and analyses the basic concepts and mechanisms of China's traditional monetary policy tools.The fourth part is the theoretical analysis of the impact of China's innovative monetary policy tools on the issue and issuance of monetary policy under the new normal state,and analyzes the mechanism and application of our innovative monetary policy tools.The fifth part is the selection of variables and models,pointing out the variables based on actual influence brought by innovative monetary policy tools,then the vector autoregressive model would be briefly introduced.The sixth part is the empirical analysis.Firstly,crossing regress the variables and set a model,investigating the impact of different variables on China's currency issue,as well as its contribution to currency issuance.The seventh part is the conclusion and policy recommendations.In this part,the paper briefly summarizes the conclusions from the empirical study,and puts forward thecorresponding policy suggestions.Through empirical analysis,it is concluded that the use of innovative monetary policy tools declines China's currency issuing balance,which indicates that the efficiency of capital use has been raised,and a certain degree of precision investment has been achieved.It also puts forward policy recommendations,making rational use of monetary policy innovation tools,maintaining a moderate liquidity,promoting the transformation of China's monetary policy innovation tools from quantity to price,and actively innovating the traditional monetary policy tools.