What is the reason for the monetary policy lag?

Monetary policy. The time lag is the need for ** banks from changes in the economic situation.

The practice interval between the implementation of monetary policy and the change in the final target variable, i.e., the realization of the effect. The time lag of monetary policy is divided into the time lag of cognition, the time lag of decision-making, and the time lag of reaction.

From the perspective of understanding the time lag, because the collection of statistical data takes time, the first bank can not obtain the changes in the economic situation in a timely manner, which shows that there is a time lag from the change of the economic situation to the first bank to grasp the changes in the economic situation and think about adopting monetary policy to regulate the economic operation.

From the perspective of decision-making time lag, because the first decision-making requires procedures, it is necessary to discuss the direction and strength of monetary policy, and then form a policy operation plan, which produces a certain time lag. If all parties do not agree on the decision-making process, the decision-making time lag will be extended accordingly, and even the best period will be missed.

From the perspective of reaction time lag, the first thing that can be changed after the bank operates the monetary policy is the base currency.

Excess reserves in the commercial banking system.

and short-term interest rates, which need to change in the amount of money and long-term interest rates to affect investment, consumption and net exports, and have an impact on the ultimate goal of monetary policy. There is a time lag in this.

Principles, Fifth Edition).

Monetary policy lag refers to the period of time that must be experienced from the formulation of a policy to obtain the main or all effects, and is an important factor affecting the effect of monetary policy. Monetary policy time lags are classified as internal and external.

The internal time lag is the period between the formulation of a policy and the action of the monetary authority. Its length depends on the monetary authority's ability to foresee developments in the economic situation, the efficiency with which it formulates policies and the determination to act. These include the time lag of cognition, decision-making, and action.

Recognition of the time lag refers to the time lag between a change in economic and financial conditions that requires monetary authority action and a monetary authority that recognizes the change and acknowledges the need to adjust monetary policy. The action lag refers to the time lag between when the monetary authority recognizes the need to adjust monetary policy and when it actually takes action.

The external time lag refers to the period from the time the monetary authority takes action until it has an impact on policy objectives. It is mainly determined by objective economic and financial conditions, and changes in monetary and interest rates do not immediately affect policy objectives. It is usually a walking time lag, and once a policy action is taken, its impact on the economy will pass through a certain amount of time, including operational lag and market lag.

The operational lag refers to the time it takes from the adjustment of monetary policy instruments to the time they have an effect on the intermediary target. Market lag refers to the time it takes for an intermediary variable to react to its effect on the target variable.

1. Internal time lag: This time lag refers to the fact that the monetary authorities first need to correctly understand the changes in the actual financial situation, and then formulate corresponding monetary policies according to the situation.

and really decide when to take action;

2. External time lag: The time lag refers to the time when the monetary authority has implemented the corresponding monetary policy action, and then the action has an effect on its vision.

The above are the two parts of the time lag of monetary policy according to the different stages of the situation.

Since the concept of time lag in monetary policy is very abstract, the time lag of monetary policy in practical application actually refers to an estimated time, especially the internal time lag. The main body of control of the internal time lag is the monetary authority of the country, so it is difficult to measure. Usually, the external time lag is estimated and measured by using certain relative indicators as a model, and the indicators generally used are changes in national income growth, changes in corporate investment, and market interest rates.

changes. However, due to the different indicators used and calculation methods, the calculation results of the time lag are also very different.

The external lag in monetary policy is mainly influenced by macroeconomic and financial conditions.

Monetary policy, also known as monetary policy, refers to the general term for the guidelines, policies and measures adopted by banks to control and regulate the amount of money and credit in order to achieve their specific economic goals.

The essence of monetary policy is that the state takes the currency according to the economic development of different periods"Tight"、"Loose"or"In moderation"and other different policy trends.

The nature of monetary policy (the way in which banks control money, and the way in which money, output, and inflation are linked) is one of the most intriguing, important, and controversial areas of macroeconomics.

The internal stagnation of monetary policy includes (slippery).

a.Recognize time lags.

b.Affect the time lag.

c.Time lag in action.

d.Market lag.

e.When acting, the belief is positive.

See the answer explained[Answer].ac[Analysis].This question examines the time lag of monetary policy. The internal time lag of monetary policy includes the time lag of recognition and the time lag of action.

The time lag of monetary policy, that is, the time effect of monetary policy, refers to the time difference between the formulation of monetary policy and the expected effect of monetary policy. As the economy is in constant flux, the authorities may not be able to recognize and judge the need for policy action in a timely manner. Even if the need for measures is recognized, they may not be implemented immediately due to the long time required for administrative procedures.

Moreover, in the process of implementation, it will take some time to be effective, assuming that there is no external intervention.

Generally speaking, the time lag of monetary policy can be divided into two parts: internal time lag and external time lag.

1) Internal time lag. It refers to the time process from when an economic phenomenon changes and requires a policy to be formulated to correct it, to when the bank actually takes action. It can be further divided into two phases:

Identify time lags. This refers to the time lag between when a change in the situation requires action by the monetary authority and when it recognizes that need. The existence of this time lag.

On the one hand, because it takes time to gather information and judge the situation, an accurate measure of the economic situation in a given period can only be obtained at some later time. On the other hand, even with clear information, it takes some time for the bank to make a judgment. Time lag in action. It refers to the period of time when the bank recognizes the need for action and when it actually takes action.

**As soon as the bank recognizes the change in the economic situation, it will immediately conduct research on the economic situation to find feasible countermeasures, and it will take time to study and act.

The length of the entire internal time lag depends on the bank's ability to foresee the development of the economic situation, the efficiency and execution of countermeasures.

Determination to move, etc.

2) External time lag. It refers to the process from the time the bank takes action until it has an impact on the policy objectives. The external time lag can be further divided into three phases:

Medium-term time lag. This is the time process from the action of the first bank to the impact of the action on the financial institution, which makes the financial institution change its reserve level, interest rate and other credit status, so as to have an impact on the entire economy and society. The length of this period depends on the response of commercial banks and other financial institutions to monetary policy and the sensitivity of financial markets.

Decision-making lag. This refers to the time process since the interest rate or credit conditions change, and individuals and manufacturers make decisions to change their spending habits or spending behaviors in the face of new circumstances. Time lag.

That is, after the expenditure unit decides the intention to spend, it will have an impact on the production and employment of the whole society, and this influence process is called the effect of the time lag.

The external time lag is mainly determined by the objective financial and economic situation, and is greatly affected by the economic structure and the behavior of various economic agents. Because the economic structure and the behavioral factors of the main economic bucket digging body are unstable and difficult, it is difficult to grasp the length of the external time lag.

Answer]: a, b, c, d

This question examines the types of time lag effects of monetary policy. The time lag effect of monetary policy includes internal time lag and external time lag, among which the internal time lag can be divided into cognitive time lag and decision-making time lag

Answer] :(1) Monetary policy lag. The time lag of monetary policy refers to the time experienced by the process of monetary policy from research, formulation to actual effect after implementation.

There are three main types of time lags in monetary policy: cognitive time lag, decision-making time lag and effect time lag. Monetarists argue that the existence of a time lag can disconnect the intent of policy decisions from the actual effect.

2) Changes in the velocity of money. It is generally believed that the importance of the velocity of money to the effect of monetary policy is manifested in the fact that if a fairly small change in the velocity of money is not anticipated and considered by policymakers, or if there is a small error in estimating the magnitude of the change, the effect of monetary policy may be seriously affected, and it may even lead to the opposite direction of the originally correct policy.