Research On New Changes In China's Open Market Operations And Its Policy Effect

Since 2016,open market operations have become the main tool for China's monetary policy,and a series of new changes have occurred in the open market operations.The central bank established a normalized mechanism for open market operations.At the same time,reverse repurchase has become the main method of open market operations.Open market operations have also been given new functions of de-leveraging,exchange rate stabilization,foam controlling and risk prevention.Upgrading the open market operating interest rate has become a new way of raising interest rates.In this context,systematically reviewing the new changes in open market operations,in-depth analysis of the logic of its changes,and empirically testing the policy effects of open market operations have strong practical significance.This article studies from both theoretical and empirical aspects.Theoretically,this article first defines the policy effects of open market operations.And analyzes the impact of open market operations on currency market interest rates,exchange rates,and house prices.On the empirical side,this paper systematically reviews the new changes in open market operations and explores its logic in depth.It also uses daily frequency data from January 2016 to March 2018 to select open market operating rates,DR007,exchange rates,house prices,and other variables.The SVAR model empirically tests the policy effects of open market operations.The main conclusions of this article are threefold:First,the open market operation can effectively guide the money market interest rate,and the central bank effectively promotes deleveraging of the bond market through open market operations.The second is that open market operations can effectively regulate the exchange rate of the RMB.The third is that the suppression of housing prices is not obvious.this paper proposes the following policy recommendations:First,the central bank can further release interest rate signals through open market operations,clear the interest rate transmission mechanism,and further improve the interest rate corridor mechanism;Second,to improve the maturity structure of government bonds,and to appropriately relax the commercial banks' futures bond futures.Market restrictions,as well as promoting the development of derivatives markets such as interest rate swaps,etc.,further develop the bond market,and strengthen the efficiency of policy interest rate transmission;Third,if the RMB has a large devaluation or appreciation pressure,the central bank can adjust the open market.Operating rates are regulated.