Federal Reserve Monetary Policy Operations Research Since The Global Financial Crisis - The Change In The Fed

Since the global financial crisis broke up at2008, the Fed has taken out a series ofunconventional monetary policies, which are the largest monetary policies throughout theAmerican history. The Fed, as representative of the central banks of developed countries hascarried out monetary policy adjustments to deal with the financial system reform and financialcrisis, and the ananlysis of this would be an international important subject. In this study, we are tomaily analyze the impact of the financial crisis on central bank (the Federal Reserve), focus on theFed’s policy changes since the beginning of the crisis, especially the central bank carried outmonetary policy across its intermediary goal (interest rates, money supply) directly to the finalgoal of macro economy (full employment, economic growth and so on). The smooth transition ofthe Fed has great research value and significance to China and other coutries. With the rapiddevelopment of Internet banking, China shadow banks, and conduction pathway from theintermediate target of monetary policy to the ultimate goal is becoming more complex, which isnot easy to discriminate, therefore it is becoming difficult to make the ideal intermediate target ofmonetary policy (such as interest rate, exchange rate) as to achieve the desired effect of policies.This study focuses on the transformation of the Fed’s monetary policy operation mode,operation tool research, focuses on the financial crisis’s impact on central bank (the FederalReserve), and the function changes of central bank.The main research contents are as follows: firstly, to analyze the resolution to promotefinancial environment and development needs of the rapid development of American shadowbanking system; combing the development process of the shadow banking system, theinternational financial crisis, USA financial system structure changes caused by the developmentof the shadow bank; to explore the affect of the shadow bank system of the central bank (theFederal Reserve).Secondly, based on the study of the structural changes of the Fed balance sheet assets toanalyze the following aspects: the Fed balance sheet structure change before and after the outbreakof the financial crisis, combing each new account (plans such as overseas repurchase pool,temporary supplementary financing); the Fed focuse changes from traditional monetary policy intobalance sheet policy. After the crisis, the Fed increased purchases of agency debt (e.g., FreddieMac Freddie Mac), its influence on the economy and society are becoming more directly. Thirdly,based on the central bank operation tool changes in the background of the implementation ofinnovative tools: combing the federal open market operation; how this new operation tool urge thecentral bank to provide liquidity support for various institutions and market directly; Fourthly, to analyze the new paradigm of the central bank’s monetary policy operations;Fifthly, to discuss thechanges of central bank functions: since the international financial crisis, the central bank (theFederal Reserve) adjust its monetary policies from the traditional to the monetary policy to adjustthe money supply; finally, combined with the transformation of the Federal Reserve, to giveimplications on the Chinese monetary authorities (the people’s Bank of China) monetary policy.The possible innovation of this paper: first, a new method: at present academia relatively newbalance sheet based on research method, study on the Fed’s balance sheet materials; secondly, thenew materials: for the first time to take the Fed as the representative of the central bank monetarypolicy operation related first-hand (English) data; thirdly, the new perspective; fourthly, themethod innovation: to put forward central bank monetary policy conduction pathway, thetraditional role of the central bank and the function of the challenge; finaly, Application ofinnovation: with the change of the Fed’s monetary policy, to make monetary policy implicationson emerging economies, especially China monetary authorities (the people’s Bank of Chinese).