A Comparative Study Of Intermediary Targets Of Monetary Policy Based On Financial Friction

With the rapid development of China's economy,China's economic development has entered a critical period of economic transformation and entered the new normal stage of the economy.This change has brought new challenges to the formulation of monetary policy in the context of macroeconomic regulation and control.Since the 1980 s,China's monetary policy has been affected by the interest rate market regulation.Monetary policy formulation has always been based on quantitative monetary policy,and the money supply is regarded as an intermediate target.The new economic normal is proposed for the interest rate market.The opening up and reform process have further deepened,and the degree of dependence of monetary policy on interest rates will inevitably increase.In view of the recent instability in the world financial market,the main reason for this phenomenon is that the amplification effect caused by financial friction has a impact on financial markets.It can be seen that in order to make the development of China's financial market more stable,the consideration of financial friction factors should not be ignored in the formulation of monetary policy.While studying the intermediate target of monetary policy,this paper incorporates financial friction into the research field,and focuses on the relationship between financial friction and the quantitative target of quantitative monetary policy and the intermediate target of price-based monetary policy.This article is divided into six parts.The first part is the introduction,which discusses the background and theoretical background of macroeconomics.The second part is to sort out the theoretical knowledge mentioned in this paper,including the related theories of monetary policy regulation and the related theories of financial friction in financial markets.The third part analyzes the current situation of China's money market and finds the changes in the money market before and after the economic transformation.The fourth part,through the establishment of VAR model,compares and analyzes the controllability of money intermediary targets under financial friction;the fifth part is The empirical analysis of the relationship between the monetary policy intermediary target and the financial friction has established a VAR model,focusing on the impact of financial friction on the currency intermediary targetand the impact of the currency intermediary target on financial friction.The sixth part draws the following conclusions: The main source of financial friction is macroeconomic fluctuations;the second is that under the financial friction environment,the controllability of the price-based monetary policy intermediary target is stronger than the quantitative monetary policy intermediary target;the third is the financial friction production utility has time lag;Is the impact of financial friction,quantitative monetary policy intermediary The initial target performance and price-based monetary policy intermediate goals are more stable compared;Fifth,quantitative monetary policy objectives and financial intermediaries friction were negatively correlated,price-based monetary policy objectives and financial intermediaries friction positive correlation.In response to the above conclusions,the following suggestions are proposed: First,the government strengthens the supervision of financial friction;second,pays attention to the relationship between the interest rate market and the money market;third,strengthens investment reform,and further opens the interest rate market;fourth,the price is adopted.The combination of monetary policy and quantitative monetary policy regulates the macro economy.