Research On The Impact Of Targeted RRR Cuts On Agricultural Economy

In order to guide credit funds into specific areas,industries or regions,the Central Bank of China made "The Targeted Adjustment of Reserve-requirement Policy",which meets the requirements of certain banking financial institutions to reduce their deposit reserves and enhance their credit capacity.The purpose of this policy is to boost the development of agriculture and micro enterprises.Since the policy named of "The Targeted Adjustment of Reserve-requirement Policy "and took implementation in April 2014,the policy have been implemented 9 times by the end of 2017.These 9 orienteering policies are also different from each other,but the overall support tendency lies in the field of "agricultural economy " and "small and micro enterprises".The Targeted Adjustment of Reserve-requirement Policy as the representative of monetary policy in recent years,the policy reflects the change the way of central bank monetary policy regulation,namely:from depending on the number of benchmark interest rates and credit control regulation mode change in the way to change on the balance sheet control;Based on the effect of the policy in agriculture,this paper analyzes the realization and realization of the policy goal of "directional reduction".In view of the relevant policies and suggestions,we hope to further implement the targeted policy objectives.In terms of theoretical analysis,this paper,based on the review and summary of existing researches on directional descending standards and related monetary policies,explained the motives of the directional descending quasi-policy policy using the currency multiplier theory,and theoretically explained the orientation.Why the policy of lowering the standard can influence the development of policy objects such as agriculture,rural areas,and small and micro enterprises,and then analyzes the methods of directing and lowering policies in agriculture.In the analysis and modeling,this paper adopts the " Difference-in-difference(DID)" to empirically research the effectiveness of directional quasi-adjustment and policy delivery.The above research indicates that the Targeted Adjustment of Reserve-requirement Policy has a positive guiding role in reducing financing costs and supporting the development of agriculture,rural areas,and small and micro enterprises.At the same time,for the banking industry,this policy has increased financial innovation and is conducive to financial innovation development and financial innovation serve the real economy.At the same time,we should note that the impact of the directional budget reduction policy on the agricultural economy has not reached the expectations of the policy.The monetary liquidity released by this policy has not accurately entered the targets of the enterprises and industries.From 2014 to the end of 2017,many directional measures have been implemented.The quasi-policy and fine-tuning of the policy have not significantly improved the effectiveness of the implementation of the policy.Finally,in view of the above arguments,this paper puts forward some suggestions for improving the Targeted Adjustment of Reserve-requirement Policy.