What are the main aspects of China s monetary policy effectiveness?

First, control the issuance of currency.

Second, control the brother's pretense and adjust the loan to **.

Third, the implementation of open high-imitation market business.

Fourth, change the reserve requirement ratio.

Fifth, adjust the rediscount rate.

Sixth, selective credit control.

Seventh, direct credit control. Look at the sum total of all the money-related regulations of the economic sector and the series of measures taken that affect the quantity of money and the balance of money. In a narrow sense, it refers to ** bank.

In order to achieve the set goals, various tools are used to adjust the amount of money, and then various policies and measures that affect macroeconomic operations. It mainly includes four aspects, namely, policy objectives, intermediary indicators, operational indicators and policy tools.

Extended Materials. Monetary policy.

The nature of the property (the way in which banks control money, and the way in which money, output, and inflation are linked) is macroeconomics.

One of the most intriguing, important, and controversial areas. Monetary policy, also known as financial policy, refers to the general term for various 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.

1) Fiscal policy consisting of ** spending and taxation.

Fiscal policy influences long-term economic growth primarily by influencing national savings and incentives for work and savings.

2) Monetary policy is carried out by the ** bank, which affects the money supply.

The amount of money is regulated by the bank, which affects the interest rate.

and the degree of credit in the economy to indirectly affect aggregate demand, so as to achieve an ideal equilibrium between aggregate demand and aggregate supply. The object of monetary policy adjustment is the amount of money, that is, the total purchasing power of the whole society, which is manifested in the form of: cash in circulation and deposits in banks of individuals, enterprises and institutions.

Cash in circulation is closely related to changes in the consumer price level, is the most active currency, and has always been an important target for the first bank's attention and regulation.

There are two pathways: financial markets and commercial banks.

Obviously, through commercial banks (deposit reserve policy, real estate credit control), China has responded relatively quickly, quickly depressing prices and suppressing real estate. Monetary policy has an internal mechanism at work between the beginning of implementation and the achievement of the ultimate goal, which is called the transmission mechanism of monetary policy or can also be called the monetary policy transmission pathway

Extended information: There are generally three basic links in the transmission of monetary policy, and the order is: from ** banks to commercial banks and other financial institutions and financial markets.

**The operation of monetary policy tools of banks, from financial institutions such as commercial banks and financial markets to various economic actors in the non-financial sector such as enterprises and residents. Commercial banks and other financial institutions adjust their behavior according to the policy operation of ** bank, so as to have an impact on the consumption, savings, investment and other economic activities of various economic actors; From non-financial sector economic actors to various economic variables in society, including total expenditure, total output, prices, employment, etc.

Monetary policy from the policy means to the operational objectives, to the effect objectives, and finally to the ultimate goal to play a role in the way and the function of the transmission process. Monetary policy is divided into two processes: formulation and implementation, and the formulation process starts from determining the ultimate goal, and then determines the effect target, operational target, and policy means in turn.

1. The ultimate goal of monetary policy.

It refers to the ultimate goal expected to be achieved through the formulation and implementation of monetary policy, which is the highest code of conduct of the first bank as a monetary policy maker.

The monetary policies of contemporary countries can generally be summarized into five items:

1. Stabilize prices.

2. Full employment.

3. Economic growth.

4. Balance of payments.

5. Financial stability.

2. Monetary policy intermediate target, also known as long-term index, is an intermediary policy variable between the ultimate goal of monetary policy and the operational index. Such as market interest rate, currency ** volume, etc.

3. Monetary policy transmission mechanism: refers to the transmission path and mechanism of the bank's use of monetary policy tools to influence intermediary indicators, and then ultimately achieve the established policy objectives. There are three main links in the monetary policy transmission mechanism:

1. Financial institutions and financial markets from ** banks to commercial banks.

2. Various economic actors from financial institutions such as commercial banks and financial markets to non-financial sectors such as enterprises and residents.

3. From the non-financial sector economic actors to various economic variables in society, including total expenditure, total output, prices, employment, etc.

1.The rapid development of fintech has changed the environment for the implementation of monetary policy.

1) The ultimate goal of monetary policy changes. Traditionally, the ultimate goals of monetary policy have been economic growth, price stability, full employment, and balance of payments.

2) Fintech has increased the vulnerability of the financial system, and the prevention of systemic risks has become an important goal of economic development, and it has also put forward new requirements for the regulatory objectives of monetary policy: the primary goal has changed from focusing on serving economic growth to emphasizing the common goal of serving economic growth and maintaining financial stability.

3) Since the final target of monetary policy is not unique, the monetary amount is used as the intermediate target of monetary policy, and the role of the nominal anchor of monetary policy target is played.

2.The development of financial technology has made the performance of monetary ** pegged to the ultimate goal of monetary policy more and more weak. Manifested as:

1) The development of fintech has made the link between supply and demand of money unstable.

On the one hand, it is easier to achieve precise adjustment of goods and services under the application of big data and deep learning algorithm technology;

On the other hand, electronic money has triggered a change in the way payment transactions are made, and the demand for base currency by tenant consumers has decreased, which has led to more frequent** changes.

2) Some of the financial derivatives business brought by financial technology has a certain function of money creation, blurring the boundaries of the monetary level, weakening the effectiveness of the bank's control over the money supply, and weakening the measurability and controllability of the amount of money.

3) Fintech is conducive to alleviating information asymmetry, thereby reducing transaction costs and improving the market's sensitivity to interest rates, thereby improving the effectiveness of the state-type monetary policy tools, and ultimately indirectly weakening the effect of the quantitative monetary policy anchored by the state with the amount of money as the anchor.

Based on the existing literature and the characteristics of China's economic development stage, this paper summarizes the development context of China's monetary policy, and analyzes the trend of China's interest rate and the trend and fluctuation of RMB exchange rate against the US dollar, which is helpful to provide reference for related research. Before the reform and opening up, China mainly referred to the Soviet model, which was a planned economy period. Monetary and financial policies are therefore designed to complement the implementation of credit programs by the Ministry of Finance.

With China's reform and opening up and economic growth over the past 40 years, China's monetary policy and exchange rate system have undergone many gradual reforms and adjustments. According to the views of Chen Yulu, Fan Conglai and others, since the independence of the People's Bank of China from the Ministry of Finance in 1978, the development process of China's monetary policy can be divided into four stages: the first stage is 1978 1997, China's economy is in a period of high economic volatility and high price volatility; The second stage was from 1998 to 2007, when China's economy was in a period of high economic growth and low inflation. The third stage is Jianyuan in 2008 and 2018, China's economy is in a period of "new normal" and low inflation; The fourth phase is the 2020 pandemic.

Based on this, this paper will summarize the development of China's monetary policy in light of the different stages of China's economic development, and analyze the trend and fluctuation of China's interest rate and the exchange rate of RMB against the US dollar. The development of China's monetary collapse policy Year 1997: The first stage of China's monetary policy development can be divided into two periods.

The years 1978 and 1983 were mainly planned economic periods, the amount of money was determined endogenously, and money was mainly used as a settlement tool to meet the allocation of resources under the planned economy. Therefore, during this period, China's monetary policy tools were mainly based on the management of planning indicators, and cooperated with the fiscal policy department to play the role of cash cashier. In 1984, after the establishment of China's ** banking and reserve system, China entered a period of macroeconomic regulation by regulating the amount of money.

From 1992 to 1997, during the period of China's monetary policy regulation and reform, its theoretical basis was mainly Fan Cong's monetary quantity theory. Since 1994, China has carried out the reform of the foreign exchange system, integrating the official exchange rate with the market-adjusted exchange rate and implementing a single managed floating exchange rate system. Foreign exchange accounts have become the main channel for the delivery of base money.

Year 2007: A period of high economic growth and low inflationFrom the second stage of China's monetary policy adjustment, the Asian financial crisis broke out in 1997, and China's economy was not greatly affected, but it also showed low inflation. From 1998 to 2002, the People's Bank of China successfully shifted monetary policy from direct to indirect control, adopting the following monetary policy tools:

Policy tools such as the statutory reserve ratio, open market operations (mainly including repurchase transactions and coil outright transactions), benchmark interest rates for deposits and loans, and rediscount rates. In 2003 and 2007, in order to curb inflation, the central bank based on the original open market operation mode.