Macro control of monetary policy and virtual currency
Publish: 2021-04-14 00:11:20
1. The difference between fiscal policy and monetary policy
1. The main body of policy-making is different
the main body of fiscal policy is the government, and the main body of monetary policy is the monetary authority of a country (generally the central bank)< 2. Policy objectives are different
although economic growth, price stability, full employment and balance of payments are the macroeconomic goals of fiscal policy and monetary policy, they have different emphases. Monetary policy focuses on monetary stability, while fiscal policy focuses on other broader objectives. In the adjustment of supply and demand structure, fiscal policy plays an irreplaceable role in adjusting instrial structure and promoting the rationalization of national economic structure. In the aspect of regulating the fairness of income distribution, monetary policy is often powerless, which can only be solved by means of fiscal policy such as taxation and transfer payment< 3. Policy means are different
the main means of fiscal policy are tax, government public expenditure and government transfer expenditure; The main means of monetary policy are open market business, legal deposit reserve rate, discount rate, credit control and so on. They are quite different in their characteristics and operation mode< 4. Policy lag is different
policy lag refers to the time required from the occurrence of problems, recognition of the need for policy action to the effectiveness of policies. Any policy has the problem of time lag. The shorter the time lag, the more timely the policy authorities can respond to the relevant situation, and the more timely the policy can play its role. According to different stages, policy delay can be divided into internal delay and external delay
the internal time lag is the time from the occurrence of problems to the policy authorities' awareness of measures to the formulation and implementation of policies. Generally speaking, the internal time lag of monetary policy is short. To change the means of fiscal policy, such as public expenditure and taxation, we need to go through a lengthy legislative process
external time lag refers to the time required from the beginning of policy implementation to the effect of policy on objectives. Relatively speaking, the external lag of fiscal policy is short, while monetary policy indirectly affects the economic activities of micro organizations through money supply and interest rate
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6. The impact on investment is different.
1. The main body of policy-making is different
the main body of fiscal policy is the government, and the main body of monetary policy is the monetary authority of a country (generally the central bank)< 2. Policy objectives are different
although economic growth, price stability, full employment and balance of payments are the macroeconomic goals of fiscal policy and monetary policy, they have different emphases. Monetary policy focuses on monetary stability, while fiscal policy focuses on other broader objectives. In the adjustment of supply and demand structure, fiscal policy plays an irreplaceable role in adjusting instrial structure and promoting the rationalization of national economic structure. In the aspect of regulating the fairness of income distribution, monetary policy is often powerless, which can only be solved by means of fiscal policy such as taxation and transfer payment< 3. Policy means are different
the main means of fiscal policy are tax, government public expenditure and government transfer expenditure; The main means of monetary policy are open market business, legal deposit reserve rate, discount rate, credit control and so on. They are quite different in their characteristics and operation mode< 4. Policy lag is different
policy lag refers to the time required from the occurrence of problems, recognition of the need for policy action to the effectiveness of policies. Any policy has the problem of time lag. The shorter the time lag, the more timely the policy authorities can respond to the relevant situation, and the more timely the policy can play its role. According to different stages, policy delay can be divided into internal delay and external delay
the internal time lag is the time from the occurrence of problems to the policy authorities' awareness of measures to the formulation and implementation of policies. Generally speaking, the internal time lag of monetary policy is short. To change the means of fiscal policy, such as public expenditure and taxation, we need to go through a lengthy legislative process
external time lag refers to the time required from the beginning of policy implementation to the effect of policy on objectives. Relatively speaking, the external lag of fiscal policy is short, while monetary policy indirectly affects the economic activities of micro organizations through money supply and interest rate
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6. The impact on investment is different.
2. Macro control
definition: the regulation and control of the national economy by the state. It is not only a necessary condition to ensure the coordinated development of social reproction, but also an important function of economic management in socialist countries. In China, the main tasks of macro-control are to maintain the balance of economic aggregate, curb inflation, promote the optimization of major economic structure, and achieve stable economic growth. Macroeconomic regulation and control mainly uses price, tax, credit, exchange rate and other economic and legal means
monetary policy: it refers to the policy and measures that the central bank uses various tools to adjust the money supply and interest rate in order to achieve the established economic goals (stabilizing prices, promoting economic growth, achieving full employment and balancing the balance of international payments), thus affecting the macro-economy
how to say, by definition, monetary policy and macro-control are both means of economic regulation, and monetary policy should be an economic means of macro-control!
definition: the regulation and control of the national economy by the state. It is not only a necessary condition to ensure the coordinated development of social reproction, but also an important function of economic management in socialist countries. In China, the main tasks of macro-control are to maintain the balance of economic aggregate, curb inflation, promote the optimization of major economic structure, and achieve stable economic growth. Macroeconomic regulation and control mainly uses price, tax, credit, exchange rate and other economic and legal means
monetary policy: it refers to the policy and measures that the central bank uses various tools to adjust the money supply and interest rate in order to achieve the established economic goals (stabilizing prices, promoting economic growth, achieving full employment and balancing the balance of international payments), thus affecting the macro-economy
how to say, by definition, monetary policy and macro-control are both means of economic regulation, and monetary policy should be an economic means of macro-control!
3. General monetary policy tools, also known as regular and conventional monetary policy tools, are the three traditional monetary policy tools, commonly known as the three magic weapons: deposit reserve policy, rediscount policy and open market business
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.
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.
4. This is a big problem - fiscal policy refers to the need to stabilize the economy, through fiscal expenditure and tax policies to adjust aggregate demand. Increasing government expenditure can stimulate aggregate demand and increase national income. Otherwise, it can suppress aggregate demand and rece national income. Tax is a contractive force to national income. Therefore, increasing government tax can restrain aggregate demand and rece national income. On the contrary, it can stimulate aggregate demand and increase national income< In a narrow sense, monetary policy refers to the policies and measures adopted by the central bank to regulate money supply and interest rates and further affect the macro-economy in order to achieve the established economic goals (stabilizing prices, promoting economic growth, achieving full employment and balancing the balance of payments)
broad monetary policy refers to all monetary regulations and measures taken by the government, the central bank and other relevant departments to influence 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 has implemented a double stable fiscal and monetary policy. Both of them adjust the relationship between social aggregate supply and demand mainly through the implementation of expansionary or contractionary policies. Both of them have their own emphases, and they are closely related. We must accurately grasp and correctly handle the relationship between them, and coordinate and flexibly use the fiscal policy and monetary policy according to the actual situation, so as to give full play to their e role and ensure the healthy, sustained and rapid development of the national economy. When the effect of monetary policy is not obvious, fiscal policy should play its leading role. At the same time, maintaining a certain scale of treasury bonds is not only an important means of fiscal policy regulation, but also can provide the necessary conditions for the central bank to develop the bond market, carry out the operation of open money market, and enhance the effectiveness of monetary policy transmission mechanism
fiscal policy and monetary policy are the two basic policy means of national macroeconomic regulation and control. Both of them adjust the relationship between social aggregate supply and demand mainly through the implementation of expansionary or contractionary policies. Both of them have their own emphases, and they are closely related. We must accurately grasp and correctly handle the relationship between them, and coordinate and flexibly use the fiscal policy and monetary policy according to the actual situation, so as to give full play to their e role and ensure the healthy, sustained and rapid development of the national economy< In today's society, the total amount of money in a country refers to the total purchasing power of social money expressed in monetary units, mainly including cash (or cash) and bank deposits ("deposit currency"), in which bank deposits account for an increasing proportion, Cash accounts for a small proportion. Therefore, the so-called money supply does not only refer to the supply of cash, but more to the supply of deposit money. At present, the main channels of money supply in a country are as follows: 1. The central bank purchases gold (or other reserve materials) issued by the central bank; 2. The central bank purchases foreign exchange reserves; 3. The central bank purchases the national debt or gives the government (Finance) overdraft; 4. The central bank issues loans to all kinds of lending banks, or purchases treasury bonds, central bank bills, financial bonds, etc. held by lending banks, and issues loans to the society through lending banks; 5. After absorbing deposits, the lending banks not only deposit a certain proportion of deposit margin or maintain a certain amount of reserve deposits, but also extend loans to the society, forming a multiplier effect of loan delivery; 6. All kinds of banks outside the central bank purchase treasury bonds, corporate bonds and foreign exchange. In addition, from the perspective of the total purchasing power of the whole country's currency, the inflow of foreign capital and the outflow of domestic currency will also affect the total amount of social currency
at present, the most flexible channel of money supply in China is bank loan, which is also the main channel of money supply; Second, all kinds of banks purchase treasury bonds and put money into society through fiscal expenditure. The flexibility of other channels of money delivery is limited. Here, the increase of treasury bonds issued by the government to banks means that banks increase money supply (and thus form the multiplier effect of fiscal supply); If the government cashes the national debt issued to the bank, it means that the bank will rece the money supply (increase the return of money). In other words, fiscal revenue and expenditure is not only reflected in the collection and payment of social money, but also reflected in the redistribution of social money. The size of treasury bonds issued to banks is an important channel to adjust the total amount of money supply. This is also an important manifestation of the close relationship between fiscal policy and monetary policy< In general, the total amount of social money is the total amount of social purchasing power expressed by money, that is, the total demand of society. However, in a certain period of time, a part of the total amount of social money will be precipitated out of the field of social proction and circulation, It does not form the actual purchasing power of the current period. Therefore, the total amount of social money can be divided into two parts: "the amount of circulating money" and "the amount of deposited money". What really affects the effective social demand in a certain period is not entirely the total amount of social money, but mainly the amount of circulating money. Of course, the change in the amount of currency in circulation is closely related to the change in the total amount of money
from the perspective of the regulatory effect of monetary policy and fiscal policy on the total amount of social money, especially the amount of currency in circulation, there are obvious differences between them, which cannot be replaced by each other
from the perspective of the basic object of monetary policy control -- bank loans for money, the funds formed by loans are debt funds. Generally, there is a specified loan period, and the principal and interest should be paid when e. The loan interest is the price or cost of loan funds. Therefore, lending is more like buying and selling of funds. Whether it can be put out and how much it actually puts in depends on the wishes of both parties and the scale of bank credit funds, rather than unconditional. Among them, banks can increase loan demand by recing loan interest rate and loan conditions, but the stimulating effect of recing interest rate on loan demand is limited, especially in a society lacking sufficient cost-benefit awareness and constraints; And indiscriminate lending regardless of cost and risk is not in line with the principles of bank operation and regulatory requirements, which should be strictly controlled. Fundamentally speaking, the growth of bank loans depends on the borrower's expectation and confidence in future income or investment return. In the face of insufficient effective demand for loans and deflation pressure, the role of expansionary monetary policy to stimulate money demand is often very limited. However, when the demand for social loans is strong, the amount of money in circulation is increasing, and facing the pressure of inflation, the role of banks as money suppliers in controlling money supply will be far greater than that in expanding money supply. In addition, by raising or recing the deposit interest rate, banks can adjust the social deposit intention to a certain extent, and thus adjust the proportion of the amount of deposited money and the amount of circulating money to a certain extent. However, the social deposit intention is also affected by many factors, especially the changes in the future revenue and expenditure expectations. The adjustment effect of simple interest rate adjustment on deposits is also limited
from the perspective of the impact of fiscal policy on the total amount of money and the amount of money in circulation, under the circumstances of strong social deposit will and insufficient investment and consumption demand, we can directly and effectively adjust the proportion of the current amount of money in circulation and the amount of money in precipitation by issuing treasury bonds to absorb part of the social precipitated money (including the bank's precipitated money) and putting it out through fiscal expenditure, And through improving the investment environment to drive private investment, improve social revenue and expenditure expectations, enhance people's confidence in future economic growth, so as to stimulate the growth of social investment and consumption demand. However, the issuance of national debt is a debt of the state to the society, which should be returned. Therefore, we must ensure the quality and efficiency of national debt investment, and avoid the "crowding out effect" of private investment e to the increase of financial investment. The total amount of treasury bonds issued must be controlled within the scope of finance to avoid serious financial crisis. At the same time, we must also see that financial investment is a kind of equity investment, which represents the ownership of the invested enterprise or project, so it has the right to manage, distribute dividends and dispose of the invested enterprise and project, but it does not have the right to require it to return the investment. This means that it is quite difficult to recover the investment once the government faces the pressure of inflation and needs to control the money supply after expanding the investment. For some projects with a long investment period, if the follow-up investment is stopped in a hurry, it may cause heavy losses
monetary policy and fiscal policy not only have different effects on the adjustment of the total amount of money, especially the amount of currency in circulation, but also have completely different nature of bank loans and fiscal investment. We should correctly understand and grasp the essential characteristics and fundamental differences between the two, and give full play to their e functions. China has implemented the policy of "changing appropriation into loan", which changed the state's Appropriation (investment) for state-owned enterprises to be solved by bank loan. Although it has played a positive role in solving the special problems in a certain period, it has brought about new and far-reaching problems: the serious shortage of enterprise capital and heavy financial burden; By changing the allocation from finance to bank loan, banks lose the standard and autonomy of loan control and become the tellers of Finance and Planning Commission; Bank loans instead of appropriations make enterprises get the reason why they can't repay the loans (there is no repayment problem for investment), thus causing serious credit problems for enterprises that can't repay the loans to state-owned banks. All these are worthy of our serious lessons
it should be emphasized that fiscal policy is the embodiment of a country's intention. Although the internal time lag of policy-making may be relatively long, once determined, its implementation is mandatory, but the external time lag is very short. Monetary policy, on the other hand, mainly depends on the adjustment of deposit and loan interest rate, deposit reserve ratio, Bill rediscount interest rate and refinance interest rate, indirectly adjusts private deposit and loan intention and bank loan intention, etc. only through multi-channel transmission can it proce effect. Therefore, its external time lag is relatively long. In order to promote the continuous improvement of the market mechanism, the state should avoid administrative intervention in the regulation of the supply and demand of social funds as far as possible, and should mainly use economic means to guide. In this case, when the effect of monetary policy is not obvious, fiscal policy should play its e role. At the same time, maintaining a certain scale of treasury bonds is not only an important means of fiscal policy regulation, but also can develop bonds for the central bank
broad monetary policy refers to all monetary regulations and measures taken by the government, the central bank and other relevant departments to influence 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 has implemented a double stable fiscal and monetary policy. Both of them adjust the relationship between social aggregate supply and demand mainly through the implementation of expansionary or contractionary policies. Both of them have their own emphases, and they are closely related. We must accurately grasp and correctly handle the relationship between them, and coordinate and flexibly use the fiscal policy and monetary policy according to the actual situation, so as to give full play to their e role and ensure the healthy, sustained and rapid development of the national economy. When the effect of monetary policy is not obvious, fiscal policy should play its leading role. At the same time, maintaining a certain scale of treasury bonds is not only an important means of fiscal policy regulation, but also can provide the necessary conditions for the central bank to develop the bond market, carry out the operation of open money market, and enhance the effectiveness of monetary policy transmission mechanism
fiscal policy and monetary policy are the two basic policy means of national macroeconomic regulation and control. Both of them adjust the relationship between social aggregate supply and demand mainly through the implementation of expansionary or contractionary policies. Both of them have their own emphases, and they are closely related. We must accurately grasp and correctly handle the relationship between them, and coordinate and flexibly use the fiscal policy and monetary policy according to the actual situation, so as to give full play to their e role and ensure the healthy, sustained and rapid development of the national economy< In today's society, the total amount of money in a country refers to the total purchasing power of social money expressed in monetary units, mainly including cash (or cash) and bank deposits ("deposit currency"), in which bank deposits account for an increasing proportion, Cash accounts for a small proportion. Therefore, the so-called money supply does not only refer to the supply of cash, but more to the supply of deposit money. At present, the main channels of money supply in a country are as follows: 1. The central bank purchases gold (or other reserve materials) issued by the central bank; 2. The central bank purchases foreign exchange reserves; 3. The central bank purchases the national debt or gives the government (Finance) overdraft; 4. The central bank issues loans to all kinds of lending banks, or purchases treasury bonds, central bank bills, financial bonds, etc. held by lending banks, and issues loans to the society through lending banks; 5. After absorbing deposits, the lending banks not only deposit a certain proportion of deposit margin or maintain a certain amount of reserve deposits, but also extend loans to the society, forming a multiplier effect of loan delivery; 6. All kinds of banks outside the central bank purchase treasury bonds, corporate bonds and foreign exchange. In addition, from the perspective of the total purchasing power of the whole country's currency, the inflow of foreign capital and the outflow of domestic currency will also affect the total amount of social currency
at present, the most flexible channel of money supply in China is bank loan, which is also the main channel of money supply; Second, all kinds of banks purchase treasury bonds and put money into society through fiscal expenditure. The flexibility of other channels of money delivery is limited. Here, the increase of treasury bonds issued by the government to banks means that banks increase money supply (and thus form the multiplier effect of fiscal supply); If the government cashes the national debt issued to the bank, it means that the bank will rece the money supply (increase the return of money). In other words, fiscal revenue and expenditure is not only reflected in the collection and payment of social money, but also reflected in the redistribution of social money. The size of treasury bonds issued to banks is an important channel to adjust the total amount of money supply. This is also an important manifestation of the close relationship between fiscal policy and monetary policy< In general, the total amount of social money is the total amount of social purchasing power expressed by money, that is, the total demand of society. However, in a certain period of time, a part of the total amount of social money will be precipitated out of the field of social proction and circulation, It does not form the actual purchasing power of the current period. Therefore, the total amount of social money can be divided into two parts: "the amount of circulating money" and "the amount of deposited money". What really affects the effective social demand in a certain period is not entirely the total amount of social money, but mainly the amount of circulating money. Of course, the change in the amount of currency in circulation is closely related to the change in the total amount of money
from the perspective of the regulatory effect of monetary policy and fiscal policy on the total amount of social money, especially the amount of currency in circulation, there are obvious differences between them, which cannot be replaced by each other
from the perspective of the basic object of monetary policy control -- bank loans for money, the funds formed by loans are debt funds. Generally, there is a specified loan period, and the principal and interest should be paid when e. The loan interest is the price or cost of loan funds. Therefore, lending is more like buying and selling of funds. Whether it can be put out and how much it actually puts in depends on the wishes of both parties and the scale of bank credit funds, rather than unconditional. Among them, banks can increase loan demand by recing loan interest rate and loan conditions, but the stimulating effect of recing interest rate on loan demand is limited, especially in a society lacking sufficient cost-benefit awareness and constraints; And indiscriminate lending regardless of cost and risk is not in line with the principles of bank operation and regulatory requirements, which should be strictly controlled. Fundamentally speaking, the growth of bank loans depends on the borrower's expectation and confidence in future income or investment return. In the face of insufficient effective demand for loans and deflation pressure, the role of expansionary monetary policy to stimulate money demand is often very limited. However, when the demand for social loans is strong, the amount of money in circulation is increasing, and facing the pressure of inflation, the role of banks as money suppliers in controlling money supply will be far greater than that in expanding money supply. In addition, by raising or recing the deposit interest rate, banks can adjust the social deposit intention to a certain extent, and thus adjust the proportion of the amount of deposited money and the amount of circulating money to a certain extent. However, the social deposit intention is also affected by many factors, especially the changes in the future revenue and expenditure expectations. The adjustment effect of simple interest rate adjustment on deposits is also limited
from the perspective of the impact of fiscal policy on the total amount of money and the amount of money in circulation, under the circumstances of strong social deposit will and insufficient investment and consumption demand, we can directly and effectively adjust the proportion of the current amount of money in circulation and the amount of money in precipitation by issuing treasury bonds to absorb part of the social precipitated money (including the bank's precipitated money) and putting it out through fiscal expenditure, And through improving the investment environment to drive private investment, improve social revenue and expenditure expectations, enhance people's confidence in future economic growth, so as to stimulate the growth of social investment and consumption demand. However, the issuance of national debt is a debt of the state to the society, which should be returned. Therefore, we must ensure the quality and efficiency of national debt investment, and avoid the "crowding out effect" of private investment e to the increase of financial investment. The total amount of treasury bonds issued must be controlled within the scope of finance to avoid serious financial crisis. At the same time, we must also see that financial investment is a kind of equity investment, which represents the ownership of the invested enterprise or project, so it has the right to manage, distribute dividends and dispose of the invested enterprise and project, but it does not have the right to require it to return the investment. This means that it is quite difficult to recover the investment once the government faces the pressure of inflation and needs to control the money supply after expanding the investment. For some projects with a long investment period, if the follow-up investment is stopped in a hurry, it may cause heavy losses
monetary policy and fiscal policy not only have different effects on the adjustment of the total amount of money, especially the amount of currency in circulation, but also have completely different nature of bank loans and fiscal investment. We should correctly understand and grasp the essential characteristics and fundamental differences between the two, and give full play to their e functions. China has implemented the policy of "changing appropriation into loan", which changed the state's Appropriation (investment) for state-owned enterprises to be solved by bank loan. Although it has played a positive role in solving the special problems in a certain period, it has brought about new and far-reaching problems: the serious shortage of enterprise capital and heavy financial burden; By changing the allocation from finance to bank loan, banks lose the standard and autonomy of loan control and become the tellers of Finance and Planning Commission; Bank loans instead of appropriations make enterprises get the reason why they can't repay the loans (there is no repayment problem for investment), thus causing serious credit problems for enterprises that can't repay the loans to state-owned banks. All these are worthy of our serious lessons
it should be emphasized that fiscal policy is the embodiment of a country's intention. Although the internal time lag of policy-making may be relatively long, once determined, its implementation is mandatory, but the external time lag is very short. Monetary policy, on the other hand, mainly depends on the adjustment of deposit and loan interest rate, deposit reserve ratio, Bill rediscount interest rate and refinance interest rate, indirectly adjusts private deposit and loan intention and bank loan intention, etc. only through multi-channel transmission can it proce effect. Therefore, its external time lag is relatively long. In order to promote the continuous improvement of the market mechanism, the state should avoid administrative intervention in the regulation of the supply and demand of social funds as far as possible, and should mainly use economic means to guide. In this case, when the effect of monetary policy is not obvious, fiscal policy should play its e role. At the same time, maintaining a certain scale of treasury bonds is not only an important means of fiscal policy regulation, but also can develop bonds for the central bank
5. The main measures of using monetary policy include seven aspects:
first, controlling currency issuance< Second, control and regulate the loans to the government
Third, open market business< Fourth, change the deposit reserve ratio
fifth, adjust the rediscount rate
sixth, selective credit regulation
seventh, direct credit control< The contents of fiscal policy include: total social procts, national income distribution, budgetary revenue and expenditure, tax policy, financial investment policy, financial subsidy policy, national debt policy, extra budgetary revenue and expenditure policy, etc.
first, controlling currency issuance< Second, control and regulate the loans to the government
Third, open market business< Fourth, change the deposit reserve ratio
fifth, adjust the rediscount rate
sixth, selective credit regulation
seventh, direct credit control< The contents of fiscal policy include: total social procts, national income distribution, budgetary revenue and expenditure, tax policy, financial investment policy, financial subsidy policy, national debt policy, extra budgetary revenue and expenditure policy, etc.
6. How to regulate and control? Graally turn to a prudent monetary policy
in order to achieve the main expected goal of development in 2011 proposed in the government work report, we should continue to implement active fiscal policies. This year, we plan to arrange a fiscal deficit of 900 billion yuan, focus on optimizing the structure of fiscal expenditure, and increase & quot; Agriculture, rural areas and farmers Key expenditures in underdeveloped areas, people's livelihood, social undertakings, structural adjustment, scientific and technological innovation, etc; We should implement a prudent monetary policy, increase the proportion of direct financing, focus on optimizing the credit structure, guide commercial banks to increase credit support for key areas and weak links, and strictly control the financing of & quot; Two high & quot; Instry and overcapacity instry loans
we should thoroughly implement the scientific outlook on development, take scientific development as the theme, accelerate the transformation of the mode of economic development as the main line, conscientiously implement the positive fiscal policy and prudent monetary policy, enhance the pertinence, flexibility and effectiveness of macro-control, and adhere to the principle of & quot; Stabilizing growth, adjusting structure, controlling price and benefiting people's proction and life; As the main direction and focus, we should accelerate the adjustment of economic structure, vigorously strengthen independent innovation, do a good job in energy conservation and emission rection, continuously deepen the reform and opening up, focus on ensuring and improving the proction and life of the people, consolidate and expand the achievements in coping with the impact of the international financial crisis, maintain stable and rapid economic development, and promote social harmony and stability
functional departments really need to explain what positive fiscal policy and prudent monetary policy are. Generally speaking, this is a major policy and an important policy for economic work. In my own understanding, the so-called positive fiscal policy is to provide more financial resources to serve the society and the people, so that the people can get more economic benefits and enjoy more development achievements. For example, the problems of kindergartens should not always be high priced. It's time to return to the public welfare and bring them into the obligation. For another example, whether the medical insurance has achieved full coverage, and whether the reimbursement rate can be further improved. The construction of cultural fitness places in urban communities is now on the agenda, and the problem of cultural and sports facilities in rural areas is not a forgotten corner.
in order to achieve the main expected goal of development in 2011 proposed in the government work report, we should continue to implement active fiscal policies. This year, we plan to arrange a fiscal deficit of 900 billion yuan, focus on optimizing the structure of fiscal expenditure, and increase & quot; Agriculture, rural areas and farmers Key expenditures in underdeveloped areas, people's livelihood, social undertakings, structural adjustment, scientific and technological innovation, etc; We should implement a prudent monetary policy, increase the proportion of direct financing, focus on optimizing the credit structure, guide commercial banks to increase credit support for key areas and weak links, and strictly control the financing of & quot; Two high & quot; Instry and overcapacity instry loans
we should thoroughly implement the scientific outlook on development, take scientific development as the theme, accelerate the transformation of the mode of economic development as the main line, conscientiously implement the positive fiscal policy and prudent monetary policy, enhance the pertinence, flexibility and effectiveness of macro-control, and adhere to the principle of & quot; Stabilizing growth, adjusting structure, controlling price and benefiting people's proction and life; As the main direction and focus, we should accelerate the adjustment of economic structure, vigorously strengthen independent innovation, do a good job in energy conservation and emission rection, continuously deepen the reform and opening up, focus on ensuring and improving the proction and life of the people, consolidate and expand the achievements in coping with the impact of the international financial crisis, maintain stable and rapid economic development, and promote social harmony and stability
functional departments really need to explain what positive fiscal policy and prudent monetary policy are. Generally speaking, this is a major policy and an important policy for economic work. In my own understanding, the so-called positive fiscal policy is to provide more financial resources to serve the society and the people, so that the people can get more economic benefits and enjoy more development achievements. For example, the problems of kindergartens should not always be high priced. It's time to return to the public welfare and bring them into the obligation. For another example, whether the medical insurance has achieved full coverage, and whether the reimbursement rate can be further improved. The construction of cultural fitness places in urban communities is now on the agenda, and the problem of cultural and sports facilities in rural areas is not a forgotten corner.
7. The negative effects of the "great unification" monetary policy and the countermeasures to correct them, The implementation of no difference management. In this way, the state can regulate and control the total social supply and demand from the total amount, and promote the basic balance between the two, so as to ensure the realization of macroeconomic goals“ The "one size fits all" monetary policy operation seldom takes into account the level difference of regional economic development. Due to the imbalance of regional economic development, the different depth and breadth of finance, and the large gap between the social basis and economic development conditions of monetary policy, the role of monetary policy in regional economic development is different. The effect difference of monetary policy in economic development between less developed areas and more developed areas is obvious, which has a certain negative impact< (1) the implementation of undifferentiated management of monetary policy operation is not concive to the harmonious development of the whole society
the differences in different economic systems and economic development levels
determine that there are differences in economic fluctuation cycles in different regions, and the regulatory effect of monetary policy is also in a certain contrast. After a new round of macro-control, the central bank's contractionary monetary policy orientation has a significant effect on preventing economic overheating in developed areas such as southern Jiangsu, but for less developed areas, the financial macro-control policy appears to be premature. In the first quarter of 2004, the investment in fixed assets of less developed Xinghua City increased by 13.12% year on year, 53.58% and 73.48% lower than that of the whole province and the south of Jiangsu Province, respectively. The macro-control monetary policy since 2003 will undoubtedly have a greater inhibitory effect on Xinghua City, which has just entered a new round of economic growth cycle< Since 2004, with a series of macro-control measures launched by the state, Taizhou's real estate market, which is in a healthy development cycle, has been cooling down prematurely. The proportion of real estate investment in the total social investment has declined for the first time since the establishment of the city, and even there has been a rare phenomenon of queuing up to buy houses in recent years< However,
the credit resources occupied by the frontier are relatively low. It is not difficult to see from the regional distribution of new
increased loans in 2005 that the proportion of new loans in Taixing and Jingjiang, which are listed in the forefront of the province's development along the Yangtze River, are respectively
11% and 19%, 34 and 26 points lower than Hailing. The credit investment and the current hot land area of proction and investment are misplaced, and the dominant position and location conditions of the development along the
River have not been fully displayed< (2) the implementation of undifferentiated management of monetary policy operation is not concive to the survival and sustainable development of residents and enterprises. In economically underdeveloped areas, the Engel coefficient of urban and rural residents is generally greater than 45%, which is 10-15% higher than that in economically developed areas. The economically developed areas have entered the affluent society, while the less developed areas have just entered the well-off stage, and a considerable number of people have only solved the problem of food and clothing. Therefore, in less developed areas, the conditions and ability of urban and rural residents to undertake monetary policy are very limited, and the required funds are mainly solved by self raised funds and private loans, which increases the burden of residents and enterprises to a large extent. According to the survey of 68 enterprises in Taizhou area, after the state strengthened macro-control in 2004, the private financing interest rate increased significantly. In 2003, the interest rate of enterprises financing to indivials was about 8 ‰,
right, and it was about 10 ‰ in May 2004.
in the fourth quarter of 2004, Taizhou financial institutions issued a total of 577 million yuan of loans, and the amount of investment dropped significantly. At the end of 2004, the private financing interest rate rose to about 11 ‰. Another
according to the typical survey of 20 rural families: Xinghua City in Taizhou
after the macro-control in 2004, the total scale of private financing increased by 16000 yuan compared with the same period, and the financing cost increased by 25%; According to the special survey,
the total amount of private financing in 2004 was 567 million yuan, an increase of 189 million yuan compared with that in 2003, with an increase of 50%, of which the proportion of investment in "hot instries" was 37%. It can be concluded that: after the regulatory role
appears, even in the case of rising financing costs, more micro
small enterprises mainly prefer private financing, and the main financing behavior is not
affected by the "depth" of national macro-control< However, in less developed areas, the organization scale of small and medium-sized enterprises is too small, the operation and credit status are poor, and the credit rating is low.
the credit guarantee system of local small and medium-sized enterprises is not perfect, and the satisfaction degree of small and medium-sized enterprises, especially small enterprises, is low, It has become a blind area that is difficult to be covered by monetary policy. After the macro-control in 2004,
the "Matthew effect" in Taizhou became more obvious. The financing difficulty of small and medium-sized enterprises and areas with relatively weak economy is increasing. According to the survey, the financing difficulty of small and medium-sized enterprises in rural areas is more prominent. In 2005, the proportion of newly increased loans and the ratio of newly increased deposits to loans in counties under their jurisdiction were only 50% and 41.4%, which decreased by 15.06 percentage points and 16.9 percentage points respectively; According to the survey of 26 small private enterprises in Huangqiao old district in the fourth quarter of 2005, the satisfaction rate of bank loans was only 38.57%, which was 24.16 percentage points lower than that in the same period< (3) the implementation of undifferentiated management of monetary policy operation is not concive to the effective transmission of monetary policy signals, It is difficult to avoid the phenomenon of "one size fits all" in credit supply after the bank regulatory authorities comprehensively cleaned up all fixed asset loans at the end of March 2004. Some commercial financial institutions have not been able to fundamentally get out of the situation of "live as soon as you release, and die as soon as you control". Credit
lending once showed a significant downward trend. At a certain point, there was a phenomenon of "only collecting but not releasing". The new deposits and loans in the whole year were relatively large, and there was an imbalance in the degree. In the first quarter of 2004, the net increase of loans was
3.915 billion yuan, with a year-on-year increase of 36.41%. From April to November, the effect of macro-control was obvious, and the growth rate of loans continued to accelerate, reaching the bottom in October, with a net decrease of 421 million yuan; In December, affected by the start of some new reserve projects and the relaxation of credit plan at the end of the year, there was a significant rebound in recovery, with a net increase of
775 million yuan, an increase of 1.452 billion yuan over the same period last year. There are obvious deviations between the loan growth and the proction and operation cycle of enterprises, and the demand of economic development on the timeliness and effectiveness of credit supply< The proportion of new loans in the first quarter and December was as high as 74%, up 37 percentage points year on year. At the end of the year, the proportion of new
increase of medium and long-term loans increased by 4.93 percentage points, while the proportion of short-term loans decreased by 10.13 percentage points
the operation of financial institutions, the perfection of financial service organization system and the development of financial market have a great impact on the effectiveness of monetary policy transmission through financial institutions. From the perspective of regional structure, new loans are further concentrated in developed regions. In 2005, the amount of new loans in urban areas accounted for 50% of the total new loans, accounting for an increase of 10 percentage points compared with the previous year. Xinghua City and Jiangyan City, with relatively weak economy, only accounted for 11% and 9% of the new loans, respectively, 5% and 7% lower than the previous year. In the current round of macro-control, in the less developed area of Xinghua City, the scale of commercial banks is relatively small and the rate of non-performing loans is relatively high. The pressure of "double drop" is very big and the ability of credit supply is greatly reced. In this case,
most commercial banks receive loans from branches, while County branches have no right to loan; The deposit and loan ratio of the four major state-owned commercial banks is low, and it is difficult for more deposits to be converted into loans. It is difficult for monetary policy to support local economic development by increasing credit supply through banking and financial institutions; Securities and insurance institutions are small in scale and quantity, the total amount of capital transactions in the market is small, and the financial market as a whole is underdeveloped
as the role of macro-control continues to appear, the capital
chain of some enterprises will be affected to varying degrees, and the stock loans of enterprises still have the risk of deterioration. At the end of 2005, excluding policy divestiture and write off, Taizhou's non-performing loans actually increased by 130 million yuan compared with the beginning of the year, and its wholly-owned commercial banks in China increased by 288 million yuan, while other commercial banks increased by 16 million yuan< (4) the implementation of undifferentiated management in monetary policy operation is not concive to the realization of the regulatory objectives.
after the macro-control, the low-income class and downstream enterprises bear the pressure of price rise, which has a negative impact on the local economy. The central bank's goal of stabilizing currency value and curbing inflation is far from being achieved. First, the life of the low-income group is becoming more difficult. Grain, oil,
meat, vegetables, coal and liquefied petroleum gas are important aspects of residents' living consumption. If the price increase of more than 20% of the above commodities is affordable to the middle-income class, it is unbearable to the low-income class. The price trend of high-level operation has great impact on the urban and rural areas The steady growth of rural residents' income has a negative impact. Second,
some downstream proction enterprises are difficult to sustain. Coal, electricity, oil, transportation, agricultural procts and iron and steel are the most important proction factors of instrial enterprises. In the case of oversupply of consumption
procts, the increase of proction cost is difficult to be transferred and digested. The price rise has a certain impact on the transportation and chemical instry. According to the investigation of Xinghua transportation company, after the macro-control in 2004, the direct cost of each passenger car per day will increase by 70 yuan e to the increase of fuel price. From January to December, the cost will increase by 27 million yuan e to the increase of fuel price, and the cost will increase by 18%. According to the investigation of Taixing Chemical Instry Development Zone, the total cost of its leading procts increased by 25% from January to December 2005, of which 88% was caused by the rising price of coal. From January to December, the total profit decreased by 45.12% compared with that of
and decreased by 26 million yuan. Thirdly, the efficiency of some instrial
enterprises has declined. According to the situation of 30 instrial prosperity enterprises monitored and measured by our central sub branch in 2005, the judgment index of purchase price of raw materials and comprehensive price level of means of proction of enterprises increased by 21 and 15 percentage points respectively, compared with the same period, and most of the middle and lower reaches of the enterprises
the differences in different economic systems and economic development levels
determine that there are differences in economic fluctuation cycles in different regions, and the regulatory effect of monetary policy is also in a certain contrast. After a new round of macro-control, the central bank's contractionary monetary policy orientation has a significant effect on preventing economic overheating in developed areas such as southern Jiangsu, but for less developed areas, the financial macro-control policy appears to be premature. In the first quarter of 2004, the investment in fixed assets of less developed Xinghua City increased by 13.12% year on year, 53.58% and 73.48% lower than that of the whole province and the south of Jiangsu Province, respectively. The macro-control monetary policy since 2003 will undoubtedly have a greater inhibitory effect on Xinghua City, which has just entered a new round of economic growth cycle< Since 2004, with a series of macro-control measures launched by the state, Taizhou's real estate market, which is in a healthy development cycle, has been cooling down prematurely. The proportion of real estate investment in the total social investment has declined for the first time since the establishment of the city, and even there has been a rare phenomenon of queuing up to buy houses in recent years< However,
the credit resources occupied by the frontier are relatively low. It is not difficult to see from the regional distribution of new
increased loans in 2005 that the proportion of new loans in Taixing and Jingjiang, which are listed in the forefront of the province's development along the Yangtze River, are respectively
11% and 19%, 34 and 26 points lower than Hailing. The credit investment and the current hot land area of proction and investment are misplaced, and the dominant position and location conditions of the development along the
River have not been fully displayed< (2) the implementation of undifferentiated management of monetary policy operation is not concive to the survival and sustainable development of residents and enterprises. In economically underdeveloped areas, the Engel coefficient of urban and rural residents is generally greater than 45%, which is 10-15% higher than that in economically developed areas. The economically developed areas have entered the affluent society, while the less developed areas have just entered the well-off stage, and a considerable number of people have only solved the problem of food and clothing. Therefore, in less developed areas, the conditions and ability of urban and rural residents to undertake monetary policy are very limited, and the required funds are mainly solved by self raised funds and private loans, which increases the burden of residents and enterprises to a large extent. According to the survey of 68 enterprises in Taizhou area, after the state strengthened macro-control in 2004, the private financing interest rate increased significantly. In 2003, the interest rate of enterprises financing to indivials was about 8 ‰,
right, and it was about 10 ‰ in May 2004.
in the fourth quarter of 2004, Taizhou financial institutions issued a total of 577 million yuan of loans, and the amount of investment dropped significantly. At the end of 2004, the private financing interest rate rose to about 11 ‰. Another
according to the typical survey of 20 rural families: Xinghua City in Taizhou
after the macro-control in 2004, the total scale of private financing increased by 16000 yuan compared with the same period, and the financing cost increased by 25%; According to the special survey,
the total amount of private financing in 2004 was 567 million yuan, an increase of 189 million yuan compared with that in 2003, with an increase of 50%, of which the proportion of investment in "hot instries" was 37%. It can be concluded that: after the regulatory role
appears, even in the case of rising financing costs, more micro
small enterprises mainly prefer private financing, and the main financing behavior is not
affected by the "depth" of national macro-control< However, in less developed areas, the organization scale of small and medium-sized enterprises is too small, the operation and credit status are poor, and the credit rating is low.
the credit guarantee system of local small and medium-sized enterprises is not perfect, and the satisfaction degree of small and medium-sized enterprises, especially small enterprises, is low, It has become a blind area that is difficult to be covered by monetary policy. After the macro-control in 2004,
the "Matthew effect" in Taizhou became more obvious. The financing difficulty of small and medium-sized enterprises and areas with relatively weak economy is increasing. According to the survey, the financing difficulty of small and medium-sized enterprises in rural areas is more prominent. In 2005, the proportion of newly increased loans and the ratio of newly increased deposits to loans in counties under their jurisdiction were only 50% and 41.4%, which decreased by 15.06 percentage points and 16.9 percentage points respectively; According to the survey of 26 small private enterprises in Huangqiao old district in the fourth quarter of 2005, the satisfaction rate of bank loans was only 38.57%, which was 24.16 percentage points lower than that in the same period< (3) the implementation of undifferentiated management of monetary policy operation is not concive to the effective transmission of monetary policy signals, It is difficult to avoid the phenomenon of "one size fits all" in credit supply after the bank regulatory authorities comprehensively cleaned up all fixed asset loans at the end of March 2004. Some commercial financial institutions have not been able to fundamentally get out of the situation of "live as soon as you release, and die as soon as you control". Credit
lending once showed a significant downward trend. At a certain point, there was a phenomenon of "only collecting but not releasing". The new deposits and loans in the whole year were relatively large, and there was an imbalance in the degree. In the first quarter of 2004, the net increase of loans was
3.915 billion yuan, with a year-on-year increase of 36.41%. From April to November, the effect of macro-control was obvious, and the growth rate of loans continued to accelerate, reaching the bottom in October, with a net decrease of 421 million yuan; In December, affected by the start of some new reserve projects and the relaxation of credit plan at the end of the year, there was a significant rebound in recovery, with a net increase of
775 million yuan, an increase of 1.452 billion yuan over the same period last year. There are obvious deviations between the loan growth and the proction and operation cycle of enterprises, and the demand of economic development on the timeliness and effectiveness of credit supply< The proportion of new loans in the first quarter and December was as high as 74%, up 37 percentage points year on year. At the end of the year, the proportion of new
increase of medium and long-term loans increased by 4.93 percentage points, while the proportion of short-term loans decreased by 10.13 percentage points
the operation of financial institutions, the perfection of financial service organization system and the development of financial market have a great impact on the effectiveness of monetary policy transmission through financial institutions. From the perspective of regional structure, new loans are further concentrated in developed regions. In 2005, the amount of new loans in urban areas accounted for 50% of the total new loans, accounting for an increase of 10 percentage points compared with the previous year. Xinghua City and Jiangyan City, with relatively weak economy, only accounted for 11% and 9% of the new loans, respectively, 5% and 7% lower than the previous year. In the current round of macro-control, in the less developed area of Xinghua City, the scale of commercial banks is relatively small and the rate of non-performing loans is relatively high. The pressure of "double drop" is very big and the ability of credit supply is greatly reced. In this case,
most commercial banks receive loans from branches, while County branches have no right to loan; The deposit and loan ratio of the four major state-owned commercial banks is low, and it is difficult for more deposits to be converted into loans. It is difficult for monetary policy to support local economic development by increasing credit supply through banking and financial institutions; Securities and insurance institutions are small in scale and quantity, the total amount of capital transactions in the market is small, and the financial market as a whole is underdeveloped
as the role of macro-control continues to appear, the capital
chain of some enterprises will be affected to varying degrees, and the stock loans of enterprises still have the risk of deterioration. At the end of 2005, excluding policy divestiture and write off, Taizhou's non-performing loans actually increased by 130 million yuan compared with the beginning of the year, and its wholly-owned commercial banks in China increased by 288 million yuan, while other commercial banks increased by 16 million yuan< (4) the implementation of undifferentiated management in monetary policy operation is not concive to the realization of the regulatory objectives.
after the macro-control, the low-income class and downstream enterprises bear the pressure of price rise, which has a negative impact on the local economy. The central bank's goal of stabilizing currency value and curbing inflation is far from being achieved. First, the life of the low-income group is becoming more difficult. Grain, oil,
meat, vegetables, coal and liquefied petroleum gas are important aspects of residents' living consumption. If the price increase of more than 20% of the above commodities is affordable to the middle-income class, it is unbearable to the low-income class. The price trend of high-level operation has great impact on the urban and rural areas The steady growth of rural residents' income has a negative impact. Second,
some downstream proction enterprises are difficult to sustain. Coal, electricity, oil, transportation, agricultural procts and iron and steel are the most important proction factors of instrial enterprises. In the case of oversupply of consumption
procts, the increase of proction cost is difficult to be transferred and digested. The price rise has a certain impact on the transportation and chemical instry. According to the investigation of Xinghua transportation company, after the macro-control in 2004, the direct cost of each passenger car per day will increase by 70 yuan e to the increase of fuel price. From January to December, the cost will increase by 27 million yuan e to the increase of fuel price, and the cost will increase by 18%. According to the investigation of Taixing Chemical Instry Development Zone, the total cost of its leading procts increased by 25% from January to December 2005, of which 88% was caused by the rising price of coal. From January to December, the total profit decreased by 45.12% compared with that of
and decreased by 26 million yuan. Thirdly, the efficiency of some instrial
enterprises has declined. According to the situation of 30 instrial prosperity enterprises monitored and measured by our central sub branch in 2005, the judgment index of purchase price of raw materials and comprehensive price level of means of proction of enterprises increased by 21 and 15 percentage points respectively, compared with the same period, and most of the middle and lower reaches of the enterprises
8.
The essence of monetary policy is that the country adopts different policy trends of "tight", "loose" or "moderate" according to the economic development in different periods
various policies and measures to use various tools to adjust money supply to adjust market interest rate, to influence private capital investment through the change of market interest rate, and to influence macroeconomic operation by affecting aggregate demand. The four tools of monetary policy to adjust aggregate demand are the legal reserve rate, open market business and discount policy, and benchmark interest rate
the central bank uses monetary policy tools to adjust the operational targets, then the intermediate targets have chain changes, and finally achieve the ultimate goal of monetary policy through various channels, which is called the monetary policy transmission mechanism
With the dynamic development of the economic situation, in order to meet the needs of the macroeconomic and financial development at that time, since the people's Bank of China (hereinafter referred to as the central bank) was established in 1984, the development of China's monetary policy intermediary target has roughly gone through three stages The first stage is from 1984 to 1993, with RMB credit scale and cash circulation as the intermediary targets of monetary policy In the second stage, from 1994 to 1997, the central bank graally weakened the index of RMB credit scale, and then increased the money supply as the core index of intermediate target The third stage is from 1998 to now, with money supply as the intermediary target of monetary policy and credit scale as the regular monitoring index9. China's monetary policy tools
(1) open market business
China's open market operation includes RMB operation and foreign exchange operation. Foreign exchange open market operation started in March 1994, RMB open market operation resumed trading on May 26, 1998, and the scale graally expanded. Since 1999, open market operation has become an important tool for the people's Bank of China's daily monetary policy operation, which has played a positive role in regulating the money supply, regulating the liquidity level of commercial banks, and guiding the trend of money market interest rate< In general, the increase of central bank loans is one of the signals that "money" will be relaxed; On the contrary, it is one of the signals that "money" will probably tighten. By the end of 2000, central bank loans accounted for 45% of the total assets business of the people's Bank of China. At present, according to the loan term, there are four grades of central bank loans in China: 20 days, three months, six months and one year. The current loan interest rates are 3.24%, 3.51%, 3.69% and 3.78% respectively< (4) interest rate policy
in recent years, the people's Bank of China has strengthened the use of interest rate instruments. The interest rate adjustment is frequent year by year, the interest rate regulation mode is more flexible, and the regulation mechanism is becoming more and more perfect. With the graal progress of interest rate marketization reform, as one of the main means of monetary policy, interest rate policy will graally transform from direct control to indirect control. As an important economic lever, interest rate will play a more important role in the national macro-control system. Since the reform and opening up, the people's Bank of China has strengthened the use of interest rate means. By adjusting the level and structure of interest rate and reforming the interest rate management system, interest rate has graally become an important lever. In May and July 1993, the people's Bank of China raised the deposit and loan interest rates twice in response to the overheated economy and rising market prices. In January and July 1995, it raised the loan interest rates twice. These adjustments effectively controlled inflation and fixed asset investment. In May and August of 1996, October of 1997 and March of 1998, in view of the fact that China's macroeconomic regulation and control had achieved remarkable results and the market prices had dropped significantly, the central bank lowered the deposit and loan interest rates four times in a timely manner. On the basis of protecting the interests of depositors, the central bank reced the interest burden of enterprises, especially large and medium-sized state-owned enterprises, Promoting the steady development of the national economy has had a positive impact
(5) exchange rate policy
monetary policy is implemented through the government's management of the country's currency, credit and banking system. The nature of monetary policy 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 2) Monetary policy is carried out by the central bank, which affects the money supply. Through the central bank to regulate the money supply, affect the interest rate and the degree of credit supply in the economy to indirectly affect the aggregate demand, in order to achieve an ideal balance between aggregate demand and aggregate supply. Monetary policy is divided into expansionary and contractionary. An active monetary policy is to stimulate aggregate demand by increasing the growth rate of money supply. Under this policy, it is easier to obtain credit and the interest rate will be reced. Therefore, when the aggregate demand is very low compared with the proction capacity of the economy, it is most appropriate to use expansionary monetary policy. The negative monetary policy is to rece the level of aggregate demand by recing the growth rate of money supply. Under this policy, it is difficult to obtain credit, and the interest rate also increases. Therefore, when the inflation is serious, it is more appropriate to adopt a negative monetary policy. The object of monetary policy regulation is money supply, that is, the total purchasing power of the whole society, which is embodied in the form of cash in circulation and bank deposits of indivials, enterprises and institutions. Cash in circulation is closely related to the change of consumer price level. It is the most active currency and has always been an important target of the central bank. Monetary policy instrument refers to the policy means adopted by the central bank to regulate the intermediate target of monetary policy. Monetary policy is a macro policy related to the overall economic situation. It has a close relationship with fiscal policy, investment policy, distribution policy and foreign investment policy. It is necessary to implement comprehensive supporting measures to maintain the stability of currency value. According to the definition of the central bank, the monetary policy tool library mainly includes open market business, deposit reserve, refinancing or discounting, interest rate policy and exchange rate policy. From the academic point of view, it can be divided into quantity tool and price tool. Price instruments are mainly reflected in the adjustment of interest rates or exchange rates. Quantitative instruments are more abundant, such as central bank bills for open market business and reserve ratio adjustment, which focus on the adjustment of money supply.
(1) open market business
China's open market operation includes RMB operation and foreign exchange operation. Foreign exchange open market operation started in March 1994, RMB open market operation resumed trading on May 26, 1998, and the scale graally expanded. Since 1999, open market operation has become an important tool for the people's Bank of China's daily monetary policy operation, which has played a positive role in regulating the money supply, regulating the liquidity level of commercial banks, and guiding the trend of money market interest rate< In general, the increase of central bank loans is one of the signals that "money" will be relaxed; On the contrary, it is one of the signals that "money" will probably tighten. By the end of 2000, central bank loans accounted for 45% of the total assets business of the people's Bank of China. At present, according to the loan term, there are four grades of central bank loans in China: 20 days, three months, six months and one year. The current loan interest rates are 3.24%, 3.51%, 3.69% and 3.78% respectively< (4) interest rate policy
in recent years, the people's Bank of China has strengthened the use of interest rate instruments. The interest rate adjustment is frequent year by year, the interest rate regulation mode is more flexible, and the regulation mechanism is becoming more and more perfect. With the graal progress of interest rate marketization reform, as one of the main means of monetary policy, interest rate policy will graally transform from direct control to indirect control. As an important economic lever, interest rate will play a more important role in the national macro-control system. Since the reform and opening up, the people's Bank of China has strengthened the use of interest rate means. By adjusting the level and structure of interest rate and reforming the interest rate management system, interest rate has graally become an important lever. In May and July 1993, the people's Bank of China raised the deposit and loan interest rates twice in response to the overheated economy and rising market prices. In January and July 1995, it raised the loan interest rates twice. These adjustments effectively controlled inflation and fixed asset investment. In May and August of 1996, October of 1997 and March of 1998, in view of the fact that China's macroeconomic regulation and control had achieved remarkable results and the market prices had dropped significantly, the central bank lowered the deposit and loan interest rates four times in a timely manner. On the basis of protecting the interests of depositors, the central bank reced the interest burden of enterprises, especially large and medium-sized state-owned enterprises, Promoting the steady development of the national economy has had a positive impact
(5) exchange rate policy
monetary policy is implemented through the government's management of the country's currency, credit and banking system. The nature of monetary policy 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 2) Monetary policy is carried out by the central bank, which affects the money supply. Through the central bank to regulate the money supply, affect the interest rate and the degree of credit supply in the economy to indirectly affect the aggregate demand, in order to achieve an ideal balance between aggregate demand and aggregate supply. Monetary policy is divided into expansionary and contractionary. An active monetary policy is to stimulate aggregate demand by increasing the growth rate of money supply. Under this policy, it is easier to obtain credit and the interest rate will be reced. Therefore, when the aggregate demand is very low compared with the proction capacity of the economy, it is most appropriate to use expansionary monetary policy. The negative monetary policy is to rece the level of aggregate demand by recing the growth rate of money supply. Under this policy, it is difficult to obtain credit, and the interest rate also increases. Therefore, when the inflation is serious, it is more appropriate to adopt a negative monetary policy. The object of monetary policy regulation is money supply, that is, the total purchasing power of the whole society, which is embodied in the form of cash in circulation and bank deposits of indivials, enterprises and institutions. Cash in circulation is closely related to the change of consumer price level. It is the most active currency and has always been an important target of the central bank. Monetary policy instrument refers to the policy means adopted by the central bank to regulate the intermediate target of monetary policy. Monetary policy is a macro policy related to the overall economic situation. It has a close relationship with fiscal policy, investment policy, distribution policy and foreign investment policy. It is necessary to implement comprehensive supporting measures to maintain the stability of currency value. According to the definition of the central bank, the monetary policy tool library mainly includes open market business, deposit reserve, refinancing or discounting, interest rate policy and exchange rate policy. From the academic point of view, it can be divided into quantity tool and price tool. Price instruments are mainly reflected in the adjustment of interest rates or exchange rates. Quantitative instruments are more abundant, such as central bank bills for open market business and reserve ratio adjustment, which focus on the adjustment of money supply.
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