The impact of virtual currency on monetary policy instruments
the deposit reserve system consists of two parts: one is the legal reserve; the other is the legal reserve; Second, excess reserves. The legal reserve refers to the deposit reserve required by law to be deposited with the central bank. The principle of its operation is that the people's Bank of China can expand or contract the credit capacity of commercial banks by adjusting the ratio of deposit reserve paid by commercial banks, so as to achieve the established monetary policy objectives. For example, if the ratio of legal reserve is raised, the scale of deposits and loans supported by a certain monetary base will be reced, thus recing the money supply in circulation; On the contrary, it will increase the money supply. Excess reserve is the reserve arranged by banks to cope with possible withdrawals in addition to the statutory reserve. It is part of the assets of commercial banks in the central bank. China's excess reserve includes two parts: one is the reserve deposited in the central bank; The second is the cash reserve in the working capital of commercial banks. The former is mainly used for inter-bank settlement and clearing, as well as for supplementary cash reserves, while the latter is used to meet the cash needs of customers.
2. By adjusting the deposit reserve ratio, the deposit reserve affects the credit capital supply capacity of financial institutions, thus indirectly regulating the money supply
3. The central bank uses the refinancing policy and rediscount policy to adjust the demand for credit funds of financial institutions, which affects the supply capacity of credit funds of financial institutions
4. According to the needs of monetary policy implementation, interest rate policy timely uses interest rate tools to adjust the interest rate level and interest rate structure, so as to affect the supply and demand of social funds and achieve the established goal of monetary policy
5. Exchange rate policy affects international trade and balances the balance of payments through exchange rate changes.
The people's Bank of China can use six monetary policy tools, whose functions and significance are as follows:
Article 23 monetary policy tools of the people's Bank of China Law
in order to implement monetary policy, the people's Bank of China can use the following monetary policy tools:
(1) require banking financial institutions to deposit reserve funds in accordance with the prescribed proportion< (2) determine the benchmark interest rate of the central bank< (3) to handle rediscount for banking financial institutions with accounts in the people's Bank of China< (4) providing loans to commercial banks< (5) buying and selling Treasury bonds, other government bonds, financial bonds and foreign exchange on the open market< (6) other monetary policy instruments determined by the State Council
in order to implement monetary policy, the people's Bank of China may stipulate specific conditions and proceres when using the monetary policy instruments listed in the preceding paragraph< This article is about the monetary policy tools used by the people's Bank of China. Monetary policy tools refer to the means adopted by the central bank to achieve the goal of monetary policy. According to Article 3 of this law, the goal of China's monetary policy is "to maintain the stability of the value of the currency and thereby promote economic growth.". In order to achieve the goal of monetary policy, the central bank should control the credit activities of general commercial banks and other financial institutions, so as to control the money supply and affect the whole national economic activities. In order to regulate finance and stabilize currency, the central bank should use economic means, supplemented by administrative means, to control and regulate the amount of credit in the market< The policy of deposit reserve refers to a system in which the central bank, in accordance with the power conferred by law, requires commercial banks and other financial institutions to withdraw a certain amount of money from the total amount of deposits they absorb and deposit it with the central bank at a prescribed ratio, so as to indirectly control the social money supply. The amount withdrawn is called deposit reserve, and the ratio of reserve to total deposit is called deposit reserve ratio or deposit reserve ratio
the deposit reserve system consists of two parts: one is the legal reserve; the other is the legal reserve; Second, excess reserves. The legal reserve refers to the deposit reserve required by law to be deposited with the central bank. The principle of its operation is that the people's Bank of China can expand or contract the credit capacity of commercial banks by adjusting the ratio of deposit reserve paid by commercial banks, so as to achieve the established monetary policy objectives. For example, if the ratio of legal reserve is raised, the scale of deposits and loans supported by a certain monetary base will be reced, thus recing the money supply in circulation; On the contrary, it will increase the money supply. Excess reserve is the reserve arranged by banks to cope with possible withdrawals in addition to the statutory reserve. It is part of the assets of commercial banks in the central bank. China's excess reserves include two parts: one is deposited in the central bank; The second is in the working capital of commercial banks. The former is mainly used for inter-bank settlement and clearing, as well as for supplementary cash reserves, while the latter is used to meet the cash needs of customers
China's deposit reserve system was reestablished in accordance with the decision of the State Council on the people's Bank of China exercising the functions of the central bank in September 1983 The law of the people's Bank of China clearly stipulates that it is the first monetary policy tool of the people's Bank of China. On March 24, 1998, the people's Bank of China issued the "notice on reforming the deposit reserve system", which made specific provisions on matters related to the deposit reserve system. The main contents of China's legal deposit reserve system are as follows:
(1) the implementation object of deposit reserve system. The first provision of this article "requires banking financial institutions to deposit reserve funds in accordance with the prescribed proportion." It can be seen that the implementation object of China's legal deposit reserve system is banking financial institutions. In accordance with the provisions of this law, banking financial institutions, i.e. commercial banks, urban credit cooperatives, rural credit cooperatives and other financial institutions within the territory of the people's Republic of China that absorb public deposits, policy banks, financial asset management companies, trust and investment companies, financial companies Financial leasing companies and other financial institutions approved by the banking regulatory authority of the State Council
(2) deposit reserve deposit range. China's current deposit reserve system only provides reserve for deposits. The so-called general deposit is relative to fiscal deposit, including enterprise deposit, savings deposit and rural deposit; Trust deposits absorbed by trust and investment institutions; Various deposits absorbed by rural credit cooperatives and cooperatives, urban credit cooperatives and cooperatives and other collective financial organizations< (3) institutions that regulate and adjust the deposit reserve ratio. The people's Bank of China is authorized by the state to set the deposit reserve ratio and adjust it according to the needs of easing or tightening money supply, and organize branches to implement it
although the deposit reserve policy is an important monetary policy tool of the central bank and plays an important role in monetary policy, it also has obvious limitations, mainly in the following aspects:
(1) the deposit reserve policy lacks flexibility. The effect brought by the adjustment of the deposit reserve ratio is very strong. It is difficult for the central bank to determine the timing and range of the adjustment. Therefore, the statutory deposit reserve ratio should not be adjusted at any time and can not be used as a tool for the central bank to control the money supply every day. Moreover, when the central bank increases the reserve ratio, commercial banks without sufficient excess reserves will be forced to sell their liquid assets, increase their loans from the central bank, or recover the money immediately. All these measures will increase the working pressure of the central bank. Therefore, the central bank generally does not like to change the deposit reserve ratio frequently, and the central banks of many countries will inform the commercial banks in advance before raising the deposit reserve ratio, which will make the effect of this monetary policy tool more stable
(2) as the deposit reserve policy has a strong impact on the excess reserve of commercial banks, the money multiplier and the money supply of the society, and has a significant impact on the psychological expectations of the whole economy and the public, the deposit reserve ratio tends to be fixed
(3) the impact of deposit reserve policy on all kinds of banks and regional banks is not consistent. Because the excess reserve is not evenly distributed in all banks, and the size of banks is different, the degree of regional economic development is different, and the types of banks are different. Therefore, the impact of the "one size fits all" change of deposit reserve ratio on all banks is not consistent, and some banks are often in a serious dilemma of poor capital turnover< (2) determining the benchmark interest rate of the central bank
the so-called interest refers to the remuneration that the money owner receives from the borrower for lending money. Interest rate is the abbreviation of interest rate, which refers to the ratio between the amount of interest and the amount of deposit or loan in a certain period, and is determined by the supply and demand of funds. There are three kinds of interest rates in China:
first, the deposit and loan interest rates of the people's Bank of China to commercial banks and other financial institutions, namely the benchmark interest rate, also known as the statutory interest rate
Second, the deposit and loan interest rates of commercial banks to enterprises and indivials are called commercial bank interest rates
thirdly, the interest rate of financial market is called market interest rate. Among them, the benchmark interest rate is the core, which plays a decisive role in the whole financial market and interest rate system. Its changes determine the changes of other interest rates. The central bank affects the capital cost of commercial banks to borrow from the central bank by increasing or recing the loan interest rate, so as to restrain or stimulate the demand for credit funds, resulting in the contraction or expansion of the total amount of credit or money supply
the benchmark interest rate is one of the important means for the Central Bank of China to achieve the goal of monetary policy, and the basis for setting the benchmark interest rate can only be the goal of monetary policy. When the focus of policy objectives changes, interest rate as a policy tool should also change. Different interest rates reflect different policy requirements. When the policy focuses on stabilizing the currency, the central bank's loan interest rate should be raised in time to curb the overheated demand; On the contrary, it should be lowered at the right time. For example, in 1987, the State Council proposed to "compress the economic air" in response to the rising temperature of the economic air, and extensively carried out the campaign of increasing proction and saving revenue and expenditure. The central bank has clearly put forward the monetary policy of "flexible in tight" and raised the loan interest rate of the central bank. Starting from the fourth quarter, the interest rate of annual loans and short-term loans will be increased from 3.4 ‰ and 5.4 ‰ to 6 ‰. In the fourth quarter of 1988, in the face of overheated economy and obvious inflation, the Party Central Committee and the State Council put forward the policy of "managing the economic environment and rectifying the economic order". A series of policies and measures aimed at tightening monetary policy were introced one after another, including continuing to increase the central bank's loan interest rate, annual loan interest rate and short-term loan interest rate from 6 ‰ to 6.9 ‰ and 6.3 ‰, In order to control the excessive demand for credit funds. Another example is that in 1995, in the face of high inflation, the central bank adopted a tight monetary policy and raised the central bank's loan interest rate by 0.5 percentage point on January 1
(3) rediscount for banking financial institutions
discount refers to the transfer of bills in which the bill holder pays certain interest to the bank or other financial institutions for financing before the maturity date of the bill. By discounting, the holder gets less than the face value of the bill, and the discount bank and other financial institutions get the ownership of the bill. Rediscount is the rediscount of commercial banks and other financial institutions to the central bank. In terms of form, rediscount is no different from discount, which is a kind of financing method combining bill and credit. But in terms of function, rediscount is one of the important means for the central bank to implement monetary policy
the so-called rediscount policy is a kind of financial policy that the central bank intervenes and influences the market interest rate and the supply and demand of the money market by setting or adjusting the rediscount interest rate, so as to regulate the money supply in the market. There are two kinds of rediscount policies. One is the long-term rediscount policy, which includes two kinds: one is the "restraining policy", that is, the central bank adopts the policy that the rediscount rate is higher than the market interest rate for a long time to increase the rediscount cost, so as to restrain the capital demand, shrink the money supply and rece the money supply in the market; The second is "supporting policy", that is, the central bank adopts the policy that the rediscount rate is lower than the market interest rate for a long time, so as to relax the discount conditions and rece the rediscount cost, so as to stimulate the demand for funds, relax the monetary policy and increase the money supply in the market. The other is short-term rediscount policy, that is, according to the supply and demand of market funds, the central bank can set a rediscount rate higher or lower than the market interest rate at any time, so as to affect the cost of borrowing funds and excess reserves of commercial banks, affect the market interest rate, and regulate the supply and demand of market funds
the process of rediscount policy is actually the process of changing the rediscount rate to affect the reserve of commercial banks and the supply and demand of social funds. When the central bank raises the rediscount rate so that it is higher than the market interest rate, commercial banks borrow from the central bank or rediscount
for example, if the deposit reserve ratio is 10%, it means that for every 10 million yuan of deposits taken by financial institutions, they have to deposit 1 million yuan of deposit reserve with the central bank, and the funds used for loans are 9 million yuan. If the deposit reserve ratio is raised to 20%, the loanable funds of financial institutions will be reced to 8 million yuan. Under the deposit reserve system, financial institutions can not use all the deposits they absorb to make loans. They must reserve a certain amount of funds, that is, deposit reserve, for the withdrawal of customers. Therefore, the deposit reserve system is concive to ensuring the normal payment of financial institutions to customers
nowadays, the central bank promulgates the statutory reserve rate in different countries, and the standards are different. Some countries only promulgate a reserve ratio, that is, all financial institutions, regardless of the amount of deposits, pay deposit reserves according to a unified standard; Some countries implement different statutory reserve rates for different financial institutions, such as commercial banks, trust and investment companies and credit cooperatives; Some countries implement different legal reserve rates according to the scale of deposits. The larger the scale of deposits, the higher the legal reserve rate
although the adjustment of legal reserve rate has a great impact on the total amount of social money supply, central banks in many countries, especially in western countries, often focus on the adjustment of rediscount rate and open market operation when implementing monetary policy. Because although the adjustment of the legal reserve rate can bring twice the result with half the effort in adjusting the total money supply policy, the side effects it brings to the society are also very obvious. The small change of the legal reserve rate will also cause a sharp change in the total amount of social money supply, forcing commercial banks to adjust their credit scale sharply, which will bring a fierce oscillation to the social economy. Especially when the central bank increases the legal reserve rate, the scale of social credit will be reced sharply, which makes many proction without follow-up capital investment and unable to form proction capacity. Therefore, the central banks of various countries tend to be cautious in adjusting the statutory reserve ratio.
it refers to the policies and measures that the central bank uses various tools to adjust the money supply to adjust the market interest rate, affects the private capital investment through the change of the market interest rate, and affects the aggregate demand to affect the macroeconomic operation in order to achieve the set goal< The main tools of monetary policy are as follows:
according to the regulatory functions and effects of monetary policy tools, monetary policy tools are mainly divided into the following categories:
first, conventional monetary policy tools
also known as general monetary policy tools. It refers to the means adopted by the central bank to have a comprehensive or general impact on the monetary credit expansion and contraction of the whole financial system. It is the most important monetary policy tool, including:
deposit reserve system
rediscount policy
open market business
it is known as the "three magic weapons" of the central bank. Mainly from the total amount of money supply and credit scale adjustment< Second, selective monetary policy tools refer to the tools adopted by the central bank for some special credit or some special economic fields, which focus on controlling the quality of banking business activities by taking the asset utilization and liability operation activities of some indivial commercial banks or the asset utilization and liability operation activities of the whole commercial bank as the object, As a necessary supplement to conventional monetary policy tools, the common selective monetary policy tools mainly include:
1. Consumer credit control
2. Credit control in securities market
3. Real estate credit control
4. Preferential interest rate
5. Advance import deposit< Third, other policy tools. Credit indirect control tool< The standing loan facility is a more direct financing method for commercial banks or financial institutions to apply for credit lines from the central bank through asset mortgage according to their own liquidity needs. As the standing loan facility provides a "one-to-one" mode between the central bank and commercial banks, this mode of monetary operation is more like customized financing and structured financing
its impact on national income
from the perspective of the aggregate supply and demand model of monetary policy, the steeper the aggregate supply curve is, that is, the greater the change of price level will not affect the aggregate supply. The flatter the aggregate demand curve is, that is, the aggregate demand is very sensitive to price, the better the effect of monetary policy on increasing balanced national income. If it is to restore the economy or promote economic growth with the fiscal policy of increasing government expenditure, there must be good projects, and at the same time, it can not cause the interest rate to rise. If there are no such conditions, there will be limitations and side effects: e to the rise of interest rates, the investment that can be carried out by the society will be abandoned, that is, there will be a "crowding out effect", or e to the lack of appropriate investment objects, the purpose can not be achieved. If the fiscal policy of tax rection is used to restore the economy or promote economic growth, there are also limitations, that is, if enterprises can not find profitable investment projects, they will not increase investment because of tax rection, so they can not achieve the intended purpose. The above is for reference.
1. Deposit reserve policy. The policy of deposit reserve refers to that the central bank stipulates the deposit reserve ratio for the deposit of commercial banks and other monetary deposit institutions, and compulsorily requires commercial banks and other monetary deposit institutions to hand in the deposit reserve according to the specified proportion; The central bank adjusts the legal deposit reserve to increase or decrease the excess reserve of commercial banks, thus affecting the money supply
2. Rediscount policy. Rediscount policy is a means by which the central bank affects the credit scale and market interest rate of commercial banks by increasing or decreasing the rediscount rate in order to achieve the goal of monetary policy
3. Open market business. The so-called "open market operation" (also known as "open market operation") refers to the central bank's open trading of securities in the financial market, in order to change the reserves of commercial banks and other deposit money institutions, and then affect the money supply and interest rate, to achieve the goal of monetary policy< In a narrow sense, monetary policy refers to the combination of policies and measures adopted by the central bank to regulate money supply and interest rate by various tools in order to achieve the established economic goals (stabilizing prices, promoting economic growth, achieving full employment and balancing the balance of payments) and further affect the macro-economy<
broad monetary policy refers to all monetary regulations and measures taken by the government, the central bank and other relevant departments to affect financial variables The main difference between the two is that the policy makers of the latter include the government and other relevant departments, who often influence the exogenous variables in the financial system and change the rules of the game, such as restricting the scale and direction of credit, opening and developing the financial market. The former is that the central bank uses discount rate, reserve ratio and open market business to achieve the goal of changing interest rate and money supply in a stable system< At present, China implements a al stable fiscal and monetary policy, which is implemented through the government's management of the country's monetary, credit and banking systems
the nature of monetary policy (the central bank controls the money supply, and the way money, output and inflation are linked) is one of the most attractive, important and controversial fields in macroeconomics
a government has a variety of policy tools to achieve its macroeconomic goals. It mainly includes:
1. Fiscal policy composed of government expenditure and tax. The main purpose of fiscal policy is to influence long-term economic growth by influencing national savings and stimulating work and savings< The monetary policy is implemented by the central bank, which affects the money supply<
the ultimate goal of monetary policy
the ultimate goal of monetary policy refers to the starting point and destination for the central bank to organize and regulate money circulation, which reflects the objective requirements of social economy for monetary policy
the ultimate goal of monetary policy generally has four goals: stabilizing prices, full employment, promoting economic growth and balancing international payments
deposit reserve refers to the deposit in the central bank prepared by financial institutions to ensure customers' withdrawal of deposits and fund clearing needs. The ratio of deposit reserve required by the central bank to its total deposits is the deposit reserve ratio. Reserve fund is originally designed to guarantee payment, but it brings an unexpected "by-proct", that is, it gives commercial banks the function of creating money, which can affect the credit expansion ability of financial institutions and indirectly regulate the money supply. It has become an important tool of the central bank's monetary policy and one of the three traditional monetary policy tools< (1) the central point of monetary policy in capitalist countries is to regulate money supply. Increasing money supply is called "loosening monetary policy", recing money supply is called "tightening monetary policy"< (2) the main measures adopted in the application of monetary policy include seven aspects:
first, controlling currency issuance. The effect of this measure is that banknotes can be neat and uniform to prevent currency confusion; The central bank can grasp the source of funds as the basis of controlling the credit activities of commercial banks; The central bank can regulate and control the money supply by using the right to issue money< Second, control and regulate the loans to the government. In order to prevent the government from abusing loans to fuel inflation, capitalist countries generally limit short-term loans to be paid off when taxes or debts are fully collected
Third, open market business. Through its open market business, the central bank can regulate money supply, expand or tighten bank credit, and then regulate economy< Fourth, change the deposit reserve ratio. By adjusting the reserve ratio, the central bank controls the loans of commercial banks and influences their credit activities< Fifth, adjust the rediscount rate. Rediscount rate is the discount behavior between commercial bank and central bank. Adjusting the rediscount rate can control and adjust the scale of credit and affect the money supply< Sixth, selective credit regulation. It is the special management of specific objects, including: securities trading credit management, consumer credit management, real estate credit management
seventh, direct credit control. It means that the central bank directly intervenes and controls the credit activities of commercial banks to control and guide the credit activities of commercial banks< (3) the application of monetary policy
the use of monetary policy can be divided into tightening monetary policy and expanding monetary policy. Generally speaking, tightening monetary policy is to achieve the effect of tightening the economy by recing the money supply, while expanding monetary policy is to achieve the effect of expanding the economy by increasing the money supply.
Monetary policy instrument system can be divided into: the main general tools and supplementary tools
First, the main general tool has the following advantages: the real effect of the legal deposit reserve ratio policy is reflected in its credit expansion ability of the deposit currency banks and the adjustment of the monetary multiplierdisadvantages:
1. When the central bank adjusts the legal deposit reserve ratio, the deposit currency bank can change its excess deposit reserve ratio in the central bank to offset the effect of the legal deposit reserve ratio policy in the opposite direction
(2) the legal deposit reserve ratio has a great influence on the money multiplier, which is often used as a "strong medicine" 3. The effect of adjusting the legal deposit reserve ratio on money supply and credit should be realized through the graal recursion of deposit and loan of deposit currency bank, with slow effect and long time lag. Therefore, the legal deposit reserve policy is often used as an automatic stabilization mechanism of monetary policy, rather than as a regular policy tool for timely adjustment Second, the advantages of supplementary tools: the advantage of indirect credit guidance is more flexible, but to work, the central bank must have a higher position in the financial system, and have sufficient legal rights and means to control creditdisadvantages: window guidance refers to that the central bank puts forward suggestions on the increase or decrease of credit to deposit currency banks according to the new situation and new problems in the economic operation such as instrial market, price trend and financial market trend
if the deposit currency bank does not accept it, the central bank will take necessary measures, such as recing the amount of its loans, or even taking sanctions such as stopping the provision of credit. Although window guidance is not legally binding, its influence is often greater
extended data:
overview of China
in 2012, the amount of new foreign exchange decreased significantly, which is an important reason for the tight domestic capital. Looking forward to 2013, China's capital flow is more likely to improve e to the overseas loose monetary policy. However, e to the mismatch between foreign currency assets and liabilities of the private sector, the private sector will still increase its foreign currency assets in the medium and long term. Therefore, the new foreign exchange account in 2013 will be improved to a certain extent, but it is difficult to support the high growth of the base currency
Secondly, the willingness of the central bank to relax the monetary policy is not strong, and the monetary multiplier is difficult to improve significantly. In the third quarter monetary policy implementation report, the central bank believed that "China's economy as a whole is still in the stage of structural adjustment, and this process will further release the growth potential". That is to say, monetary policy may take promoting structural adjustment as an important goal, rather than seeking counter cyclical promotion of short-term rapid economic rebound, but it does not rule out adjusting deposit reserve ratio to hedge foreign exchange changes