The relationship between the Federal Reserve and China's digi

1. I don't know if you are interested in the exam. If you are, I will talk about it briefly. 1. The expansion and contraction of the balance sheet by the central bank is essentially the concept of the United States. Because the US Federal Reserve is a private bank, that is, the central bank's monetary policy has great independence, it is impossible to require the US Federal Reserve to issue money indiscriminately. Therefore, if the US Federal Reserve wants to issue money, the US will issue treasury bonds. The US Federal Reserve will purchase the Treasury bonds and invest the money into the real economy to stimulate the development of the real economy. Therefore, from the perspective of the balance sheet of the central bank, the amount of money issued by the asset side has increased, and the amount of treasury bonds held by the liability side has also increased. This is the so-called expansion of the balance sheet, and the popular explanation is quantitative easing. 2. The Federal Reserve has no ability to directly regulate bank lending, it can only regulate interbank lending rate to affect lending. The result of quantitative easing is to control the quantity of high-energy money, which has no impact on the money multiplier. The adjustment of deposit rate by the Federal Reserve can affect the money multiplier. 3. As for the impact of quantitative easing, it is mainly explained from the perspective of Keynesian economics. Generally speaking, it is to restrain the impulse of citizens to hold money, so as to promote the economic recovery. 4. The general unstable exchange rate of the Federal Reserve, the United States is a floating exchange rate system, the exchange rate is free to float. 5. I would like to say a little more here, because the essence of quantitative easing is that the Federal Reserve has purchased US Treasury bonds, that is to say, issued a large number of treasury bonds, which will lead to the so-called debt problem. Quantitative easing comes down in one continuous line with the US debt problem. 6. In contrast, China's central bank is not independent, so it will indiscriminately issue money at the request of the central bank. After the world economic crisis, China's M2 has soared from 40 trillion to 100 trillion, which is the highest in the world. Of course, we should exclude the amplification effect of money multiplier and capital bank idling, China's finance has come to the brink of collapse, and the consequences will be unimaginable.

2. The Fed has no direct relationship with China
the Federal Reserve System of the United States is responsible for performing the functions of the Central Bank of the United States. The system was established on November 16, 1914 under the Federal Reserve Act
the federal reserve system consists of the Federal Reserve Board in Washington, D.C. and 12 regional Federal Reserve Banks in major cities across the country. Janet Yellen is the current top Federal Reserve official. As the Central Bank of the United States, the Federal Reserve obtains power from the U.S. Congress to formulate monetary policy and supervise U.S. financial institutions.

3. The increase of interest rate will lead to the increase of savings, the decrease of capital flow, and the suppression of inflation. From the exchange rate, the US dollar will be supported, and the US dollar will appreciate
recing interest rate will rece the attraction of domestic currency to investors, because saving money gets less interest, so it has an impact on the exchange rate from this perspective
inevitably, because RMB is graally appreciating, it has not yet reached the expected goal, so every domestic interest rate increase will lead to the rise of the exchange rate, and the depreciation of the US dollar exacerbates the speed of the rise.

4. The Federal Reserve System is referred to as the Federal Reserve, which is responsible for performing the ties of the Central Bank of the United States.
this system was established on December 23, 1913 according to the Federal Reserve Act.
the Federal Reserve Board is the core management body of the Federal reserve

5. The interest rate gap between the two countries has further expanded, and more and more hot money has been flowing into China, which has brought great instability to China's macroeconomic excursion. This money has increased the asset bubbles of the two major markets in the stock market and the real estate market.

6. The US dollar's interest rate cut actually promotes the further appreciation of RMB
the interest rate of the US dollar has been reced, while the interest rate of our country is constantly increasing, and the interest level of our country has been higher than that of the US dollar. Then a large amount of hot money in the international market will convert US dollars into RMB and flow into China in the foreign exchange market. Then, according to the simple relationship between supply and demand. As the demand for RMB increases, the exchange rate will rise, which will further exert pressure on RMB appreciation
the main impact on the stock market is the impact of RMB appreciation on the stock market. Benefiting from the appreciation of RMB, banks and real estate are the main revenue sectors.

7. The U.S. government issues the same amount of money through mortgage tax rights, and the Federal Reserve issues the same amount of money. But in fact, the Fed issues far more money than it mortgages. The U.S. Federal Reserve is equivalent to the people's Bank of China, but the people's Bank of China is controlled by the state, and the Federal Reserve is private, controlled by several big families and big bankers

8. Hehe, throw a brick to attract jade
question 1: the people's Bank of China, of course, has to listen to the Party Central Committee and the government. Form doesn't matter. As long as you wink, you must apply immediately. This consciousness must be possessed< Second, there must be taxes. In fact, the devaluation of currency caused by inflation and the shift of purchasing power to the government are essentially like an inflation tax. But the inflation tax is "equal" to all people and instries in the economy. As long as you have a ticket in your hand, it will depreciate in equal proportion, and the government's own single ticket will also depreciate
however, different taxes can be levied on different instries, different tax rates and tax rebates can be obtained, and various instries and various groups of people can be regulated, "cultivated and suppressed". If we replace it with inflation tax, we will lose the ability of economic and social allocation; In addition, the "meticulous tax management" established in the process of Taxation has the function of "supervising and managing social and economic activities". If it is replaced by inflation tax, it will not lose this function again
and inflation tax has many side effects, such as short term economic overheating, asset bubbles and bubble collapses.

question 3: "the inflation caused by the government issuing more money can be controlled through the strong administrative intervention of the government". According to your hypothesis, of course, inflation can be controlled. In this case, of course, we have to pay taxes. Otherwise, where will the government's revenue come from? As for tax adjustment, for example, suppose that all those who make steamed buns are subject to 100% business tax, and those who sell steamed buns for 100 yuan have to pay 100 yuan tax. Do you think anyone else will sell steamed buns. If you say that the price is increased and sold for 10000 yuan, you have to pay 10000 yuan tax. On the contrary, other food procts will bring profits.

9. The main reason for China to sell US Treasury bonds is to exchange US dollars, and then sell US dollars in the foreign exchange market to stabilize the RMB exchange rate.

10. What is the main difference between China and the Federal Reserve?