Research On The Effectiveness Of Innovative Monetary Policy Tools Under The Background Of Volume-price Transition

At present,China's economy is in an important stage of "new normal" structural adjustment and reform.Its main characteristics can be reflected in major changes in the major changes of economic growth drivers,social financing structure,and economic growth.During this period,it is difficult to effectively exert the expected effects,which is due to the significant acceleration of financial innovation and the blocked transmission mechanism for traditional monetary policy tools.In addition,the liquidity environment of China's financial market has also undergone tremendous changes,which are specifically manifested in two levels,First of all,the launched basic currency for china has been significantly reduced through Position for Forex Purchase,which is due to the reduction in the scale of net exports and the increase of net capital outflows after 2014.Secondly,China's liquidity conditions is characterized by abundant integrity and structural shortage.Based on the above background,the People's Bank of China has created a series of innovative monetary policy tools,such as Standing Loan Facilities(SLF),Medium-term Lending Facilities(MLF)and Pledged Supplementary Lending(PSL).They can effectively regulate not only the liquidity of different maturities,controlling the fluctuation of interest rates,but also be more conducive to the stable development of financial markets.From a long-term perspective,the interest rate corridor of lending facilities have a significant effect.It can control not only short-term interest rates,but also guide medium-and long-term interest rates rationally.It can be seen from the monetary policy operation of the People's Bank of China that the central bank has adopted a combined operation of quantitative tools and price tools and Price tools for the long-term.Price tools usually focus on market interest rates,while quantity tools pay attention to the changes of credit and money supply.For the quantitative policies,the traditional credit policy has paid more attention to the money supply,but traditional credit goals have gradually been replaced by broad-based credit(social financing scale).As for price-based policies,the effectiveness of the central bank 's benchmark deposit and loan interest rates is getting weaker,and the gradual formation of the financial market interest rate system represented by the Shanghai Interbank Offered Rate(SHIBOR)is the central bank 's interest rate corridor mechanism Market foundation.On the other hand,in order to speed up the process of interest rate liberalization and "two tracks in one track",the central bank will continue to guide commercial banks to improve the internal transfer pricing(FTP)system and embed LPR(loan market quoted interest rate)into the bank's internal interest rate Mechanism.This is because the actual loan interest rate is formed on the basis of LPR,and the increase of the bank depends on the bank 's internal capital cost.By improving the internal fund transfer pricing system,it helps to improve the LPR transmission mechanism and promote the reduction of the actual loan interest rate.Based on the above,this article starts with the logic of “quantity-price transition of monetary policy framework” and starts with the logic of “theoretical analysis,empirical testing and policy recommendations”.First,we found through theoretical research that an innovative monetary policy tool constructed the upper limit of the interest rate corridor,which not only effectively stabilized the interest rate in the financial market,but also broadened the scope of qualified collateral,enabled the targeted flow of funds,and reduced the financing of small and micro enterprises to some extent.Therefore,the article believes that new monetary policy instruments are more inclined to price-based regulation than quantitative regulation.Secondly,the empirical research found that the innovative monetary policy tool is obviously insufficient in regulating the M2 and social financing scale,and the regulation effect on the Shibor interest rate is better,although the standing borrowing facility(SLF)is the most innovative monetary policy tool with the strongest regulation.But the continuation effect is not satisfactory,while the mortgage supplementary loan(PSL)and mediumterm lending facility(MLF)have strong stability and good continuity.Overall,innovative monetary policy instruments have significant control over the Shibor interest rate.The effect of the regulation on quantitative intermediary indicators is weak.Finally,based on the current financial system reform and the current status of the transmission of innovative monetary policy tools,combined with the conclusions of this paper,the main purpose is to strengthen the effectiveness of monetary policy transmission,rationally use innovative monetary policy tools in light of economic conditions,and promote monetary policy from quantitative to Relevant suggestions are made in several aspects such as price changes.In order to better cope with the challenges of monetary policy transformation in China,this article puts forward some policy recommendations such as further perfecting and enriching China 's monetary policy toolbox,and improving the interest rate transmission mechanism,in order to provide a certain amount of interest rate marketization and the subsequent financial system reform Reference role.