What is a monetary policy intermediary indicator

English translation: intermediate target of monetary policy is between the ultimate goal and the operational index, which is the policy variable that the bank can achieve with a certain degree of accuracy after the operation and transmission of monetary policy; There are usually market interest rates, currency volumes, and under certain conditions, credit volumes and exchange rates can also be used as intermediary indicators. Most countries choose financial variables such as interest rates, monetary volumes, base money, and excess reserves as intermediary indicators.

Among them, interest rates and monetary ** are the intermediary indicators of monetary policy forwards, and base money and excess reserves are intermediary indicators of monetary policy in the near future.

The intermediary index of monetary policy is between the ultimate goal and the operation index, which is the policy variable that the bank can achieve with a certain degree of accuracy through the operation and transmission of monetary policy, such as market interest rate, currency volume, credit scale and exchange rate. The selection of intermediary indicators should meet three criteria: measurability, ** banks can quickly obtain accurate data of these indicators, and make corresponding analysis and judgment; Controllable, these indicators can be affected by monetary policy in a short enough period of time, and change according to the direction and intensity set by the policy; Relevance, which is closely related to the ultimate goal of monetary policy, can basically achieve the policy goal by controlling these indicators.

**Bank. There are three main criteria for selecting the intermediary target of monetary policy:

1.Measurability, central bank.

It is possible to make more accurate statistics on these variables, which are the intermediary objectives of monetary policy.

2.Controllability, the central bank can control the selected intermediary targets with a relatively high degree of confidence within the determined or expected range.

3.Correlation.

The variables that are the intermediary objectives of monetary policy are closely related to the ultimate goal of monetary policy.

Monetary policy intermediary objectives: **Banks use monetary policy tools to first influence monetary variables such as interest rates or money supply when implementing monetary policy. Through changes in these variables, the bank's policy tools indirectly affect the ultimate target variables such as output, employment, prices, and balance of payments.

Therefore, monetary variables such as interest rates or money supply are referred to as monetary policy intermediary targets.

The intermediary target (intermediary indicator) :* * the financial variable selected by the bank or monetary authority in order to achieve the ultimate goal of monetary policy.

Specifically, these include: interest rates (long-term or short-term), currency** amounts, excess reserves, and exchange rates.

Operational objectives (operational indicators): When the intermediary objectives are not directly affected by the monetary instruments of the bank, you can judge whether the policy tools are accurate according to the operational indicators, and you need to wait until the policy is implemented to see the results.

Specifically, the scope includes: total reserves, base money, and interest rates (interest rates on government bonds).

The monetary policy intermediary indicator refers to a policy variable that is controlled by the bank in the middle of the target and the target. Monetary policy intermediary indicators usually include market interest rates and monetary amounts, and sometimes credit volume and exchange rate can also be counted in the index allocation. The control and defeat of the intermediary indicators of monetary policy are generally achieved through the operation and transmission of monetary policy.

The intermediary indicators of monetary policy are feasible, controllable and correlated, and these three points are also necessary to consider when selecting manipulable variables. Scalability is because banks need to quickly obtain data for analysis and supplementary operations, controllability is the need for indicators to be quickly affected by policies and thus change, and correlation is the need for indicators to be closely related to the goal in order to judge the completion of the goal. These points are not only the characteristics of the intermediary indicators of monetary policy but also its advantages, and the corresponding disadvantage is that these indicators cannot be directly controlled after all, there is a certain time lag and uncertainty, and it is only a means of adjustment and cannot directly control the market trend.

The selection criteria for monetary policy intermediary indicators mainly include the following aspects:

Easy to measure: Intermediary indicators should be precisely measurable so that the central bank can keep abreast of changes in the money market in a timely manner.

Reflect the supply and demand of money: The intermediary indicators should be able to reflect the changes in the supply and demand of money, so that the central bank can achieve the goal of monetary policy by adjusting the supply and demand of money.

Forward-looking: Intermediary indicators should be able to ** the trend of economic changes so that the central bank can adjust monetary policy in a timely manner.

Stability: The intermediary indicators should be stable and not easily affected by short-term factors, so that the central bank can better grasp the long-term trend of the currency market.

Representative: Intermediary indicators should be representative of the economy as a whole and not be limited to a certain industry or sector.

In short, the selection of intermediary indicators of monetary policy should fully consider factors such as the measurement of indicators, reflecting the relationship between supply and demand of money, forward-looking, stability, correlation and representativeness, so that the central bank can better formulate monetary policy and achieve the goal of macroeconomic regulation and control.

Monetary policy. The target refers to the bank.

The purpose to be achieved by taking measures to regulate money and credit. The monetary policy objectives can be divided into three levels, namely the ultimate goal, the intermediary goal and the operational goal. The intermediary target is a very important intermediate link in the process of monetary policy, and it is also an important indicator variable to judge the strength and effect of monetary policy.

Anti-interference and adaptability, the intermediary objectives of monetary policy often used include the size of bank credit, the amount of money, long-term interest rates, etc.

Measurability: It means that the bank can quickly obtain the accurate data of these indicators and make corresponding analysis and judgment.

Controllability: It means that these indicators can accept the influence of monetary policy in a short enough period of time, and change according to the direction and intensity set by the policy.

One of the intermediary indicators of monetary policy forwards is: interest rates.

Interest rates and monetary indicators are two intermediary indicators that are closer to the ultimate goal of monetary policy and are generally regarded as long-term indicators. Excess reserves and base money are short-term commes.

Monetary policy intermediary indicators refer to intermediate or conductive financial variables selected to achieve monetary policy objectives. The medium personality index is a very important intermediate link in the process of monetary policy, which is related to whether the ultimate goal of monetary policy can be achieved.

In general, an appropriate monetary policy intermediary indicator should have the following four characteristics:

1. Measurability, that is, the bank can quickly and accurately obtain various information of the intermediary indicators it selects, and can be understood, judged and pre-drunk by the society.

2. Controllability, that is, the bank should be able to control effectively and will not encounter too many troubles and obstacles.

3. Relevance, that is, the intermediary indicators should have a high correlation with the monetary policy objectives.

4. Anti-interference, that is, the financial indicators as operational indicators and intermediary indicators should be able to reflect the policy effect more correctly, and be less affected by external factors.

The content of the intermediary indicators of monetary policy includes:

1. Interest rate. It mainly refers to medium and long-term interest rates.

Its advantages are: a. controllability. Under the indirect regulation system, long-term interest rate changes can be guided to affect economic investment and savings, so as to achieve the purpose of regulating aggregate output.

b. The medium and long-term interest rates are highly measurable.

c. Relevance. Medium- and long-term interest rates have an important impact on investment, especially real estate and equipment, and thus are directly related to the income level of society as a whole.

2. Bank credit scale. It refers to the total amount of deposits and loans of the banking system to the public and various economic units. It consists of two parts: deposit and loan.

3. The amount of currency.

a. It is controllable. The money supply is the product of the base money and the money multiplier, and the controllability of the money supply is actually the controllability of the base money and the controllability of the money multiplier.

b. It is easier to measure. c. There is a close relationship between the money supply and the ultimate goal.

4. Base currency. Base money, also known as high-energy money, is a combination of cash in circulation and bank reserves.

a. The accomplices in the base currency are directly controlled by the ** bank.

b. The base currency is expressed as the liabilities of the first bank, which has strong measurability.

c. Base money is the basis for the commercial banking system to create deposit money, and it is also an important factor in determining the amount of money.

5. Bank deposit reserves: refers to the deposit balances of commercial banks and other depository institutions in ** banks and their unique cash in hand.

Classification: a. Statutory reserve and excess reserve; b. Borrowed and non-borrowed reserves.