Utilization And Effect Analysis Of China's Optimization Tools Of Monetary Policy

Under the current market economy background,the application of monetary policy is one of the important ways of macroeconomic regulation in China.Although China's economy has developed at a high speed in the past 40 years of reform and opening up,the shortcomings and risks brought about by this simple pursuit of high-speed economic growth are also increasing.Under the background of the "new normal" economy,that is,the speed of economic growth has changed from high-speed to medium-high-speed,the economic structure has been optimized and upgraded continuously,and the driving force of economic growth has changed from investment and factor to innovation.In this macro-environment,as the macro-regulator of the economy,it is necessary for the central bank to adjust the economic structure rationally and realize the sustainable development of the economy step by step so as to ensure the currency.Effective implementation of policies and the introduction of new monetary policy tools.By analyzing the four transmission mechanisms of interest rate,asset price,bank credit and balance sheet of new monetary policy instruments,this paper shows that they are effective to money supply,interest rate,social financing scale and even macro-economy.Then,we select the time series data from 2016 to 2019 to conduct a comparative study of the horizontal and vertical status and effects through charts,and draw a corresponding conclusion: the impact of four new monetary policy instruments on the effect variables is different.In the empirical analysis of the effectiveness of new monetary policy instruments,seven indicators,namely,the broad money supply(M2),Shanghai interbank lending rate(shibor),credit scale(CS),short-term liquidity regulation(SLO),standing loan facility(SLF),medium-term lending facility(MLF),mortgage supplementary loan(PSL),are selected to test the Cointegration and construct the VEC model.Quantitative empirical analysis shows that its implementation effect is remarkable: for the effect variable M2,interest rate shibor and social financing scale increment CS,the most influential new monetary policy instruments are MLF,SLO and SLF.Generally speaking,in the short term,SLF has the strongest impact,followed by SLO,while MLF and PSL,as middle-end interest rate adjustment tools,play a more significant role in the medium and long term.Finally,according to the results of theoretical analysis and empirical analysis,this paper puts forward policy recommendations from two aspects:innovating new monetary policy tools and improving the effectiveness of monetary policy.In terms of innovating new monetary policy tools in China,we should improve the central bank's monetary policy toolbox,gradually shift the existing monetary policy tools from quantitative to price-oriented,and strengthen the coordination and use of traditional monetary policy tools to maximize their utility.In terms of improving the effectiveness of monetary policy tools,we should improve the operating environment of monetary policy tools in China's financial market,give full play to the role of interest rate marketization to dredge the transmission channels of new monetary policy tools,and enhance the public's openness to monetary policy information.