What are the negative impacts of the removal of monetary policy on China?

If the monetary policy is canceled, the external environment: because the United States has implemented QE3 in order to resolve its own financial crisis, exporting inflation on a global scale and flooding monetary flows around the world, China's unilateral cancellation of monetary policy will increase domestic inflationary pressure. In addition, a surplus of dollars can prevent the exchange rate from being kept at a relatively stable level.

Internal environment: If there is no domestic monetary policy regulation, the first thing that should be affected is the runaway currency issuance. This will lead to a relatively large impact on a country's financial and real economy.

Because interest rates are a very important economic factor, they affect all aspects of economic indicators. The stability and controllability of interest rates will play a crucial role in the stable development of a country's economy. Interest rates are the basis of financial pricing and the basis of borrowing cost accounting for the real economy.

So much to think about for the time being ...

That is economic liberalism, with the market regulating itself.

My own superficial understanding:

First of all, let's talk about monetary policy, which refers to intervening in the country's economy by controlling the money supply and regulating interest rates!

If the country has two regions, A and B, and the economy of A is overheated and the development of B is slow, the state will adopt different monetary policies in these two regions in order to regulate and control this unbalanced economic development! Specifically, if the economy of region A is overheated, the country will raise interest rates in that region, and as a result, the monetary policy in region A will be tightened, and some speculative or bubble economies will be reduced; In Zone B, the state lowers interest rates, making people more willing to borrow from banks, followed by faster circulation of the region's currency, which boosts the local economy!

Of course, just as an example, because a country will set the same interest rate, otherwise it will be messed up! Hehe... Hope this helps!!

There are two sides, and the key is to see the increase or decrease of currency.

Monetary policy, as the name suggests, is about monetary policy, and in fact, monetary policy also affects the economy by adjusting the money supply. For example, some time ago, China's inflation was relatively severe, and the central bank adopted a tight monetary policy, which is to reduce the amount of possible money in circulation by raising the statutory reserve ratio, and the amount of money decreases, and the cost of using money will increase, which will inhibit the use of money (mainly investment), reduce demand, and have a certain inhibitory effect on inflation.

The mechanism of loose monetary policy is similar, it is also to affect the economy by changing the money supply, and the easing is to increase the money supply, the increase in supply, and the reduction of the cost of using money, which will promote investment and consumption, and have a promoting effect on the economy.

Hello, it can be understood in this way. Monetary policy directly or indirectly affects the amount of money, in terms of the amount of money, if the amount of money increases, on the one hand, it will make it easier for enterprises to obtain external funds, and will reduce the cost of using funds, which is conducive to enterprises to actively expand production, thus creating conditions for the expansion of import and export. On the other hand, with the support of loose monetary policy, enterprises can implement the "going out" strategy through domestic loans, invest in foreign factories, and this will also make it more convenient for foreign enterprises to obtain loans in imports to China, which will have a positive impact on imports and exports.

Conversely, tight monetary policy is the opposite.

On the other hand, from the perspective of interest rates, raising the interest rate on deposits and loans (a tight monetary policy) will directly increase the financing cost of enterprises, and will make it more difficult to obtain financing due to the tightening of liquidity, which is not conducive to the expansion of exports. In an open economic system, the monetary policies of various countries are the same, and raising interest rates will increase people's tendency to save, which will reduce the desire for current consumption, which is also not conducive to the expansion of China's import and export.

Hope it helps, thank you.

Select A, C, D

a.Liquidity preference refers to people's preference for physical money or money that can be realized as soon as possible, while monetary policy is used from the perspective of credit money.

c.Any policy has its limitations.

d.There is a time lag in any policy and measure. Sometimes there is a time lag that can lead to a policy failure at all.

b.It refers to fiscal policy, which affects private investment.

e.It does not matter.

acde, b is the effect of fiscal policy.