Dynamic Monetary Policy Transparency And Inflation Expectation Management

This article divides the central bank's policy tools for inflation expectations management into two categories:improving monetary policy transparency and traditional monetary policy tools.In order to study how the central bank actually implements the combination of the two policy tools under different monetary policy systems in actual operation,this paper constructs a dynamic monetary policy transparency index,and uses inflation rates predicted by experts to measure inflation expectations.It conducts empirical research by utilizing a SVAR model in the context of quantitative monetary policy systems,price monetary policy systems,and mixed systems.Research shows that under the trend of a price-based monetary policy system,the main measure should be to strengthen the transparency of monetary policy,supplemented by traditional monetary policy tools.When the quantitative monetary policy system takes the lead,efforts should be made to control the growth rate of M2,supplemented by strengthening the transparency of monetary policy.