Research On The Impact Of China's Innovative Monetary Policy Tools On Intermediate Target

Since the first operation of the short-term liquidity adjustment tool(SLO)in 2013,other innovative monetary policy tools have been introduced successively.After nearly seven years of development,innovative monetary policy tools have become the standard in the central bank's monetary policy tool basket.The traditional mechanism of monetary policy tools mainly focuses on the regulation of aggregates,while innovative monetary policy tools pay more attention to the adjustment of the structure,replacing the loosening of aggregates with precise investment.The innovative monetary policy tools are targeted,the areas of fund support,the objects of support,and the targeted release of liquidity are all clearly defined,and their directional characteristics make monetary policy more targeted and flexible,and can guide funds to the weak links of the real economy,and can realize the on-demand distribution of currency within the real economy and reduce the financing costs of related enterprises.In the end,innovative monetary policy tools will reduce the drag on the real economy through the dredging of monetary policy,optimize the channels for traditional currency investment,and achieve the goals of improving structure and promoting development.China is now in the stage of pursuing high-quality economic development,China's economic development is not blindly pursuing high GDP growth,but to promote economic structural adjustment and economic development transformation through economic system reform.Due to lax financial supervision and management,financial innovation has promoted the development of Internet finance and the increasing role of shadow banking,and the implementation of traditional monetary policy tools has gradually weakened.In this context,when traditional monetary policy injects liquidity into financial institutions,it has limited guidance on the investment of credit resources of financial institutions.Traditional monetary policy tools have insufficient credit support for small and micro enterprises and the three rural areas.The transformation and upgrading of the industrial structure are not suitable,and the effectiveness of traditional monetary policy tools has declined.In order to make up for the shortcomings of traditional monetary policy tools,it is necessary to innovate the traditional monetary policy tools.At this stage of the continuous advancement of interest rate liberalization,monetary policy also shoulders the task of guiding market interest rates,expanding the amount of bank loanable funds and reducing financing costs.Under these factors,innovative monetary policy tools have played an important role in China's practice.Monetary policy intermediary indicators refer to indicators that can be observed and adjusted by the central bank to achieve the ultimate goal of its monetary policy.It is the bridge between the tools of monetary policy and the ultimate goal of monetary policy,and it plays a connecting role in the transmission of monetary policy.In reality,there is a long process from the application of monetary policy tools to the realization of the ultimate goal of monetary policy.In the implementation of monetary policy,the central bank needs to know whether its policy tools are effective,which requires the setting of intermediary indicators.At the same time,the ultimate goal of monetary policy is some non-quantitative goals.The monetary authorities themselves cannot directly control and achieve monetary policy goals such as price stability and economic growth.The intermediary indicators that are highly related to the final goals of monetary policy and monetary policy tools are the objects to observe and control at any time.Through the adjustment and influence of the intermediary indicators,the policy goals are finally achieved.Therefore,studying the impact of innovative monetary policy tools on intermediary target is of great significance for China's macroeconomic regulation and control,policy objectives and financial reform.Based on reading a lot of literature and combining with the actual situation of China's current financial reform,this article determines the background and significance of the topic.First,it explains the background,characteristics and current status of China's innovative monetary policy tools,then it analyzes the impact of innovative monetary policy tools on the intermediary goals from a theoretical and empirical perspective.Specifically,it is divided into the following five parts:The first part is introduction.It mainly introduces the research background and significance of China's innovative monetary policy tools,a review of domestic and foreign literature,the research framework and methods of the article,and the main innovations and deficiencies of the article.The second part is an overview of innovative monetary policy tools.First explain the background of innovative monetary policy tools.In this context,introduce the types and characteristics of innovative monetary policy tools.Finally,analyze the application of innovative monetary policy tools in China.The third part is the theoretical analysis of the effect of innovative monetary policy tools on the intermediary targets.First,a qualitative analysis of innovative monetary policy tools is conducted,mainly from the perspective of the impact of innovative monetary policy tools on the three intermediary goals of money supply,interest rates,and social financing scale.The fourth part is an empirical analysis of the impact of innovative monetary policy tools on intermediary targets.Use the VAR model to quantitatively analyze innovative monetary policy tools and use empirical analysis methods such as impulse response analysis and variance decomposition to verify the effect of monetary policy instruments on the adjustment of money supply,interest rates,and the scale of social financing.The fifth part is the main conclusions and policy suggestions.According to the results of empirical research,based on the results of empirical research,the main conclusions of the article are drawn,and corresponding policy suggestions for optimizing China's monetary policy tools are put forward.This paper finds that innovative monetary policy tools have a regulating effect on the money supply and market interest rates.Among them,the standing borrowing facility and the medium-term borrowing facility have a better regulation effect,have a weaker regulating effect on the scale of social financing.We can make adjustments in the following aspects: proper use of innovative monetary policy tools,unblock interest rate transmission channels,clear the operating environment of innovative monetary policy tools,strengthen the coordination of innovative monetary policy tools and credit policies.Make the use of monetary policy tools to regulate the economy.