Research On Changes Of Monetary Aggregates Influenced By The Factor Of Financial Innovation

Financial innovation makes a great contribution to the change of statistical caliber of monetary aggregates,which has became the consensus of scholars already.Financial innovation happens all the time.Functional Method and Empirical Method are used frequently by monetary authorities to deciede whether to make a change for the statistical caliber of monetary aggregates or not.For financial innovation instruments,its development and expansion has to undergo a relatively long process.So we can't help but ask: are there several distinct stages of the development of the financial innovation instruments ? This paper proposes The Logic of the Monetary Authorities' Actions,including the choice of timing for adjusting the statistical caliber of monetary aggregates and the choice of regulatory policies in response to financial innovation.Our work is of great benefit to the monetary statistical practice of monetary authorities and the implementation of regulatory policies.This paper first discusses the theoretical basis of the financial innovation diffusion model and some problems in the model variables and puts forward the argument of "Three Stages of the Development Process of Financial Innovation".Then constructs the theoretical system of "the Behavior Logic of Monetary Authorities in the Perspective of Three Stages of the Development Process of Financial Innovation".The core of the theoretical system lies in the timing of the adjustment of the statistical caliber of money aggregates and the adjustment of monetary policies which are closely coordinated with the adjustment of the statistical caliber of money aggregates.After that,the paper reviews and sorts out the evolution of monetary policy and other policies in the United States and China and the adjustment time of its monetary aggregates statistical caliber and the corresponding monetary policy are examined in detail to verify whether the behavior of monetary authorities of the two countries is consistent with the "Logic of Monetary Authority Behavior" theoretical system.Finally,the paper compares the differences and similarities of monetary supply statistics between China and the United States and relevant monetary policies and draws some conclusions and puts forward some policy suggestions.The final conclusions of this paper show as follows: First,the behavioral logic of the monetary authorities of China and the United States basically conforms to the theoretical system constructed in this paper.The monetary policies of the two countries in response to financial innovation have some consistency,but the regulatory policies for micro-financial innovation are different;Second,the more forward-looking the timing of monetary supply adjustment,the better the adjustment effect will be.We put forward some policy Suggestions:(1)China's monetary authorities should pay close attention to the latest development trend of financial innovation and make timely and reasonable adjustments to the monetary aggregate statistics,which will improve the monetary structure and aggregate information.The release of the Aggregate Financing to the Real Economy can be said to be of great reference significance for this;(2)China should continue to actively and steadily promote the process of interest rate liberalization,which is of great significance for improving the deposit absorption capacity of depository financial institutions,optimizing the allocation of credit resources,promoting the transformation and upgrading the economic structure.To some extent,it is also helpful to improve the effectiveness of money aggregate as an intermediary target of monetary policy.The main contributions of this paper are as follows:Firstly,on the basis of reforming the existing financial innovation diffusion model,the thesis puts forward the argument of Three Stages of the Development Process of Financial Innovation and elaborates the different effects of financial innovation on the monetary aggregates in different development stages.Secondly,the theoretical system of "the Behavior Logic of Monetary Authorities in the Perspective of Three Stages of the Development Process of Financial Innovation " is constructed.In addition to the Functional Method and Empirical Method,this paper provides a new way for monetary authorities to choose the timing of adjustment of monetary aggregates.On the other hand,it also provides some reference significance for monetary authorities and other regulatory authorities to choose policies for different development stages of financial innovation.Thirdly,the paper systematically investigates the behavioral logic of the adjustment of the monetary aggregates in China and the U.S and finds that both of them conform to the Theory System.Through comparative study,it is found that the more prospective the timing of monetary aggregates adjustment is,the more significant the adjustment effect will be.It also summarizes the similarities and differences of the two countries policy choices on financial innovation.