A Study On The Effectiveness Of Price Monetary Policy Tools In The New Normal

Under the new normal state of economy,the traditional economic growth rate of our country has become unsustainable,the mode of economic growth has been changed from factor driving and investment driving to innovation driving.At the same time,the adjustment and control of monetary policy in our country has gradually changed from focusing on quantitative monetary policy tools to focusing on price monetary policy instruments.Under this background,it is of great significance to study and compare the effectiveness of different price monetary policy tools for perfecting the interest rate transmission mechanism in China.This paper first reviews the theory of monetary policy transmission mechanism and the effectiveness of price and quantitative monetary policy,and thinks that price policy regulation and interest rate transmission mechanism will play an important role.Secondly,the paper expounds the problems from the theory of monetary policy transmission mechanism and the theory of monetary policy effectiveness.Thirdly,the article expounds the new characteristics of monetary policy under the new normal condition from the aspects of fine adjustment of monetary policy target,choice of common monetary policy tools and stage change of monetary policy transmission in China.Finally,taking 2012 as the starting point of empirical research,this paper selects the six year data from 2012 to 2017 to use VAR model to compare the effectiveness of different price monetary policy instruments of the people's Bank of China and to explore whether the transmission mechanism of interest rate of monetary policy is smooth.The research results show that the policy tools such as the seven days reverse repurchase rate,the benchmark deposit and loan rate and the short term Treasury bond interest rate can all transmit smoothly to the money market interest rate.Among them,the effect of central bank's open market operation on reverse repurchase rate is short,and the effect of benchmark deposit and loan interest rate and short-term treasury bond rate on Shibor is relatively long and stable.The smooth transmission from money market to capital market and from capital market to output need to be improved.The paper suggests that we should improve the transmission process of monetary policy,unblock the path of interest rate transmission,improve the coordination degree of banks,enterprises and other related subjects,choose to coordinate the use of different price tools with quantitative and price types,traditional and structural,and choose different price tools.