Research On The Macroeconomic Effects Of Quantitative And Price-based Monetary Policy In China

Monetary policy control mode can be highly refined into quantitative and price-based types. There are significant differences as to control characteristics, transmission channels between the two types. Since the two kinds of monetary policy are closely linked to the degree of the market economy development and financial environment properties, their implemntion conditions and macroeconomic effects are the focus in the academic circle.The People's Bank of China exercises their responsibility of the central bank independently since1984. And, China's monetary policy control mode shifts many times, monetary policy tools and its adjustment means tend to be diversified. Meanwhile, along with economic development and financial deepening, the macroeconomic background also changes frequently. Hence, in the more and more complex social and economic background, the effects of monetary policy are controversial.This paper applies related monetary finance theory, overall analyzes the background, mechanism and implementation effects of quantitative and price-based monetary policies. Based on this, the paper divides China's economic cycle into single cycle, double cycles and superposition cycles, analyzes the two types of monetary policy on the aspects of implementation degree, rhythm and their macroeconomic impacts by using statistical analysis and empirical methods. Furthermore, the paper introduces time-varying parameter model to divide the cycle economy into the smaller range, as to test the macroeconomic effects of the two classes control mode more accurately. Finally, the paper comparatively analyses two types of monetary policy in the process of monetary policy transmission based on the perspective of intermediary target correlation, in order to improve the pertinence and flexibility of monetary policy in our country.Based on the systematic analysis, this paper obtains the following main results:(1) The quantitative and price-based control of monetary policy becomes normalized and frequent.(2) Due to their own characteristics, quantitative and price-based monetary policies have their own advantages. The advantage of quantitative control is mainly reflected in adjustment impact on macroeconomy; the advantage of price-based control is mainly reflected in transmission delay.(3) From the evolutionary perspective, the macroeconomic effects of quantitative and price-based monetary policies changed, which is the co-results of the mature of monetary policy and the complexity of macroeconomic background.(4) From the time-varying and the evolutionary points of view, quantitative monetary policy has the relative stable macroeconomic effects, while the price-based policy have the features of tendency and time-varing. For the adjustment of shock response, the maximum impact of price-based control to macroeconomic becomes weaker.(5) The correlation between the quantitative control and macroeconomy becomes weaker, while the correlation between the price-based control and macroeconomy is on the rise. Looked from the overall, the quantitative control in our country still occupies the dominant position in the macro-financial control.