The Study On Coordination Of "Two Pillar" Regulation Of Macro-prudential Policy And Monetary Policy

After the 2008 financial crisis,it is widely acknowledged for the regulatory authorities that the macro-prudential regulation has become more and more of a focus in the financial regulatory reform,and with the growing awareness of the great influence of the implementation of the macro-prudential policies,China financial regulatory authorities are now exploring the frame system construction of the macro-prudential regulatory to prevented the systematic risk,so that the financial system can always stay stable.However,It is still in the exploration about how to implement the macro-prudential policies as well as how to coordinate the relationship between the macro-prudential policy and the monetary policies,therefor,this paper mainly explored the simulation and analysis of the coordination relationship between the macro-prudential policies and monetary policies based on the DSGE model.In this paper,in order to reflect the reality of China's liberalization of deposit interest rate cap and the transition of monetary policy from quantity-oriented to price-oriented through a four-sector stochastic dynamic general equilibrium model including family sector,enterprise sector,banking sector and government sector,the policy of discount and interest rate liberalization has been set up.The impulse response analysis and variance decomposition of major macroeconomic variables were done with the impact of discount policy and open rate policy.By constructing the function of welfare loss,the effects of exogenous shocks on welfare level are studied under the three strategies of implementing monetary policy and macroprudential policy separately and two policies simultaneously.The conclusion shows:(1)In the implementation of discount policy,the effect of the implementation of the family sector is better than that of manufacturers and banks.At the same time,the implementation of the bank discount policy failed to have a significant impact on the economic variables,indicating that it is of little significance to impose the bank discount policy.(2)Under the policy of interest rate opening,output will decrease to a certain extent,which indicates that after interest rate liberalization,the rise of market interest rate will lead to a slight contraction of the economy.(3)When monetary policy and macro-prudential policy are implemented together,welfare losses are significantly reduced under the impact of interest rate liberalization and discount policy,which is superior to the situation where monetary policy and prudential policy make decisions separately.Therefore,it is necessary to coordinate and cooperate monetary policy and macro-prudential policy.