| Quantitative easing (QE) refers to the central bank purchasing bonds directly from the market, increasing the supply of base money, inject liquidity monetary policy intervention.As we all know, the means of government regulation of the economy, including fiscal policy and monetary policy. When the government debt is huge, to enter the critical point, the use of fiscal policy will be restricted, or the effects of policies are already limited. Monetary policy in general, includes indirect and direct monetary policy and monetary policy. Indirect monetary policy is the regulation of "rate" policy, and direct monetary policy, open market operations including quantitative easing policy.New Open Economy Macroeconomics, a.k.a. NOEM, does not refer to a new discipline, but in order to distinguish it from the international economics MFD traditional "old" research paradigm. And is known as the "the new Wicksell","New Keynesian " or " neo-classical "method, NOEM model is closer to monetary economics, and more concerned about the situation in an open economy. So basic NOEM model also combines imperfect competition in labor and product markets, nominal rigidities and the optimal price setting which due to time-varying profit. The new open economy macroeconomics most notable feature is the solid micro-foundation and can be used to do benefit analysis. The latter is based on the former is based. It is solid microscopic foundation through for total utility analysis for welfare analysis, policy comparison.Dynamic in the world of economics, macroeconomics is an important and even can be said that mainstream analysis method than the DSGE method is called a "process" rather than the model, because it is (Kydland FE, Prescott EC,1982), a research method, and then the economic scholars turn this method is applied to the respective school model, the corresponding model of the formation of their own school, so I think the DSGE is actually a method, rather than a specific model.But the degree of attention and recognition of the degree of domestic economics specification surface analysis and research, the derivation of the mathematical model is not very high. This article is more of a hope to promote the use of the DSGE method in an open economy monetary policy theoretical basis, and some empirical tests. Macroeconomics has been after the birth of the Keynesian economics has not yet come to systemic conclusion branch. Currency is a hot research topic in macroeconomics. How the money enters an open economy model is still a controversial topic among the theorists.In the country, due to the relationship between History and teaching inheritance, monetary policy has been one of the economists and financial circles (especially macro-financial sector), the most important topic of discussion, but for the study of monetary policy in open conditions is relatively small.On the other hand, a large number of domestic research resources and energy into empirical research and policy analysis, the lack of the most cutting-edge technology for economic theory and theoretical introduction. Is due to the various arguments and other reasons exist, the most advanced, most cutting-edge theories and techniques cannot be applied in China’s point of view.Using the point of view of the New Keynesians DSGE method, the NOEM framework of an open economy, combined with China’s actual parameter values, the typical impact simulation and analysis. The following is the theoretical development of ideas.In this paper, the new open economy macroeconomics (NOEM) model set of simple finishing, and on this basis, trade goods and the set of non-tradable goods and national openness to analyze the two countries in asymmetric pricing mechanism and price stickiness in the case of optimal monetary policy from a welfare point of view to analyze and enrich the evidence of experience in China’s monetary policy analysis in the framework of the NOEM. Comparative study with empirical data on China and the United States, Europe, and Japan in addition to draw interest rates have a significant effect on the money supply conclusion also reached Japan’s monetary policy also has a strong impact on China’s monetary policy Conclusions of the force. We have also developed a dynamic stochastic general equilibrium (Dynamic Stochastic General Equilibrium, namely DSGE) New Open Economy Macroeconomics (New Open Economy Macroeconomics, that NOEM) under the framework of the New Keynesian sticky prices and sticky-wage model of a small country. In this paper, a theoretical model inherited the closed economy DSGE model with habit, be extended to the small open economy with NOEM framework, and try to join the credit variable in the household budget constraint, then relax its constraints, supplemented with Chinese characteristics monetary policy equation, examine the impact of model feedback. Focus on detailed analysis of the theoretical model, by adding after the impact of monetary policy, to discuss each parameter setting and by pulses corresponding equation to evaluate the characteristics of the model.Since DSGE method has been proposed more than30years, the foreign mainstream macroeconomics theoretical models have been after the reform of the methods, but for the domestic use of the method is not very widely. This country was founded to be relatively widely recognized than the official the DSGE method of macro-theoretical model is also just around the corner, we hope to be able to promote China to establish an open New Keynesian DSGE model little humble.Many developed and emerging countries or economies of the Central Bank for DSGE method to give high attention and applied in varying degrees the DSGE established model.Growth theory revolves around a lot of macroeconomics and monetary model expanded Recently, the development of nothing less than including imperfect competition, nominal rigidities into the DSGE method class model structure. Monetary policy has become a potential stability tools, but at the same time, it is also a double-edged sword, because it can also become an economic fluctuations independent sources. Domestic monetary policy is quite rich, including discretionary rules, different rules, such as the money supply rules and the Taylor rule, the study of the different intermediate target of monetary policy effectiveness research, different Taylor rule, and the details of which one is better research. This paper mainly discusses the case of a small open economy monetary policy issues, including the internal structure of the model. For the case of the model of the two countries, to take the macro measured Exploration. In the case of a small open economy, joined the sticky prices and wages was modeled, taken Calvo staggered price method. Different settings of staggered sticky prices impact the monetary policy on real economic variables.New Keynesian suffered questioned after the financial crisis, but it is still one of the mainstream economists, especially in China, stressed the point of view of government intervention is in line with the idea of the current economic work. Said the New Keynesian three of its most notable features:First, nominal rigidities;, market structure is monopolistic competition, that is to say, a work containing the imperfect competition; Third, monetary policy is not neutral, in fact it is obtained in accordance with the first model set, but also can be said to make the non-neutral monetary policy, while the introduction of the viscous.Most of the domestic monetary policy focused on the measurement method, tested by different indicators, and finally concluded. Although this measure is necessary, but it is inevitable that a sense of itching across the "black box" boots, so that monetary policy how to really play a role in the economic operation help to understand a bit thin. Domestic monetary policy for the derivation and the establishment of the mathematical model seems insufficient attention to, especially monetary policy equation (MPE) on the entire economic system of equations are discussed in the relevant study also less.Nominal rigidity impact the real economy, that is, the nominal amount of the actual amount of impact. Stickiness, two main form of entry to the models is sticky prices and sticky wages.And open model, there are generally two approaches of the two models and the model of a small country. Thus, there are six combinations of creating sticky price and wage into small open economy model or two country model.In this paper, for the operation of monetary policy will produce what kind of monetary policy shocks, as well as economies under the impact of each variable is how the reaction was analyzed.The paper is structured as follows:The first chapter is the introduction part, introduced the background and significance of the research, the main method of research ideas and to take the possible existence of innovation as well as areas for improvement.The second chapter is the theoretical basis and the literature review section. Of this article the theoretical basis NOEM framework for this framework, new Keynesian perspective, the dynamic stochastic general equilibrium approach angle and the new open economy macroeconomics three angles a comb on the theoretical basis of this article. Then the literature review of quantitative easing was discussed.Chapter3is New Open Economy Macroeconomics framework analysis, including analysis of the set of its predecessor Redux model, and then the pioneer work on the new open economy macroeconomics (Obstfeld M, Rogoff K,1996) a detailed analysis and elaboration. Methodological point of view in the DSGE model set to re-examine the elaboration of a general model of the New Keynesian DSGE method in the framework of the NOEM basic settings and solving technical means. The chapter on the Redux model has been the latest developments in all aspects of a comprehensive analysis and presentation, especially for pricing methods and monetary policy analysis section focuses expression. After combing the past NOEM framework of development process, and look forward to the future direction of development.Chapter4is the baseline model used in this paper analysis of specific settings and the corresponding set of reasons, and what this article the NOEM framework to establish what kind of model, a small country model and the model of the two countries, which have their own advantages and disadvantages, model to establish the need to pay attention to what, to solve the model through which technical means to achieve other aspects described in this chapter.Chapter5the Chinese model developed under the framework of the NOEM try for specific parameter setting and calibration followed by a simulation and observe the money supply as the representative of the impact of demand shocks on the model and the performance of the impulse response function.Chapter6of monetary policy under the framework of the NOEM a simple application can be said that a small test chopper, and conducted a series of macro-empirical testing.Chapter7is some conclusions and follow-up studies the idea of this article.Finally, the appendices, references and Postscript come. |
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