The Impact Of Structural Monetary Policy On The Financing Constraints Of Small And Micro Enterprises(SMEs)

Small and micro enterprises(SMEs)who lack "signals”,are vulnerable to the impact of financing constraints.However,generally speaking,a country’s SMEs are of great significance to the employment,economic stability,innovation power and industrial potential,so it is of practical significance to solve their financing constraints.Due to the global financial crisis in 2008 and the outbreak of the coronavirus pandemic in 2020,structural monetary policy is gradually widely used in major economies,which breaks through the traditional function of central bank monetary policy in macroeconomic regulation and control,and dedicates to a more direct and specific solution to the present economic structural problems,and to solve the small micro enterprise financing constraint problems.However,except for China,the status of structural monetary policy has not been recognized by major foreign economies,and it has been widely criticized by its "phased" policy objectives and "administrative intervention" manage methods.No relevant theories of policy application have been formed.Therefore,the paper studies "structural monetary policy" in solving the above problem of "financing constraints for SMEs",which has plagued the world for nearly a century.From the perspective of international comparison,the paper studies around Policy Practice,Theoretical Analysis and Empirical Research,so as to make exploration for the improvement of the central bank’s monetary policy framework and application of structural monetary policy mechanisms.The section of Policy Practice is mainly in the third chapter of this paper.First of all,by clarifying the concept of structural monetary policy,this paper holds that its origin and development are divided into two veins of China and other countries.After that,this paper sorts out 13 structural monetary policy tools of SMEs in 5 countries with significant structural characteristics,and divides them into three categories of Directed Lending Facility,Targeted Deposit Reserve,and Targeted Quantitative Easing.Based on the evaluation criteria of " applicability of the tool",this paper qualitatively evaluates the effects of 13 policy tools from three aspects of category,environment and coordination of the policy.Next,this paper applies four types of theories of monetary policy transmission mechanisms to structural monetary policy,and the transmission channels of structural monetary policy of SMEs are mainly divided into credit channels and balance sheets(structure and scale),in addition,interest rate channels play a role as subsidiary channels of credit channels.It also focuses on the quantitative evaluation of the policy implementation effect from the three aspects of scale,coverage and cost,and analyzes three leakage losses of policies transmission.The section of Theoretical Analysis is mainly in the fourth chapter of this paper.This paper finds that the implementation and transmission problems of policy are largely related to the behavior of relevant parties,so it jumps out of the research on the elements of monetary policy framework,but grasps the behavior choices of related parties,from the perspectives of a "single" party and the process of "trilateral" decisionmaking.On the one hand,by using Heiner and Vercelli’s post-Keynesian behavior choice model,the paper creatively puts forward the "J-R gap" theory of Credit Rationing,which not only clearly explains the theory of Credit Rationing,but also proposes a well-founded solution.On the other hand,based on the "trilateral" behavior selection analysis,with the introduction of the Game Theory,this article simplifies the relevant behavior into "rule-oriented" and "effect-oriented”,and introduces the variable"probability" of the behavior strategy selection,and creatively constructs two groups of trilateral mixed strategy model.The core conclusion includes: the existence of optimal probability theoretically proves the existence of tripartite policy game equilibrium state of central bank,commercial bank and SME.Then,taking the implementation of structural tools in various economies since the epidemic in 2020 as an example,the conclusions of theoretical analysis are further verified.Based on this,it is proposed of the mechanism design for optimizing the structural monetary policy of SMEs.The sections of Empirical Research are mainly in the fifth,sixth and seventh chapter of this paper,which are divided into three parts: the international comparison of the effects of structural tools,the effects of various SME structural tools in China at the macro level,the financing availability of SMEs and the effects of various policies in China at the micro level.Firstly,the paper empirically creates four sets of time series VAR models in the US,Europe,Japan and China,and the results show that:(1)The structural tools of the four groups of economies have a positive effect on improving the financing constraints of SMEs,but the effect is different in strength,stability and maintenance time.(2)When the economy is improving,SMEs in various economies have weak demand of credit funds,which reflects the lack of confidence in economic recovery.(3)The monetary policy environment in all economies has a positive impact on the growth of credit balance of SMEs in general,but there will be a slight negative effect in the convergence of the US and China.(4)SME loans in the US and member countries in ECB are influenced by the real economy more,while SME loans in Japan and China are influenced by the monetary policy environment more.Secondly,based on the macro perspective of the "volume" and "price" effects of structural monetary policy,two sets of Time Series Regression models of three structural tools of Targeted Deposit Reserve,SME Refinancing and Rediscounting are constructed.The results show that:(1)In overall and individual aspects,Targeted Deposit Reserve in size or price,are the most powerful in its policy effect,which is different from other countries.In addition,due to the more indirect transmission method of this tool,the "relationship financing theory" is reflected from the side.(2)As structural tools widely used in the world,Refinancing and Rediscount of SMEs do not have significant scale effect on SME loans in China,which may be related to the strong "administrative" characteristics of these tools,because of the leakage of transmission.(3)The three groups of structural tools all have strong price effect,which reflects that the price channel of China’s structural tools is relatively smooth,and the reform of interest rate liberalization in China is successful.Thirdly,in order to study the micro effect of structural monetary tools on the improvement of financing constraints of SMEs,it is built of the cross-section binary Logit Model,by dividing the policies into direct support and indirect groups.The results show that:(1)The direct support and indirect guidance policies for SMEs’ financial services implemented in China in 2019 and 2020 have synergistic effects,and the combination policies with both fiscal and financial characteristics are more effective.In the same macroeconomic environment,even if the economy suffers a major impact,indirect guiding policies such as the use of small and micro structural tools of the Central Bank are still superior to direct supporting policies such as bailout funds.(2)Other financing channels have a certain degree of substitution for bank loans,but with the release of credit condition,the substitution has decreased significantly.It is more difficult for the sample enterprises to obtain financing from large banks than from small and medium-sized banks,which again verifies the applicability of Relational Financing Theory in China.(3)Indirect guidance policies such as credit loans,loan business purposes,and loan renewal can achieve compatibility between the business objectives of SMEs and the policy objectives.(4)In terms of small and micro enterprises themselves,sample enterprises with longer years,public owned enterprises,and those in the middle and upper of industrial chain,and those with profitability are easier to obtain loans.Finally,the paper puts forward the following suggestions for improving the structural monetary policies of SMEs and easing the financing constraints of SMEs.From the perspective of improving the framework and application of the monetary policy,(1)it is suggested to bring the structural monetary policies into the monetary policy framework of the central bank and seek a balance between normalization and exit mechanism,(2)it is suggested to break the classification boundary between pricebased and quantity-based monetary policy tools,and to establish the developmental and holistic view of monetary policy.From the perspective of optimizing the design of the SMEs structural monetary policy mechanism,(1)it is suggested that the design of SME tools should focus on the compatibility of objectives,opening up policy transmission channels to ensure policy effects,(2)it is suggested to make greater use of policy synergy and increase policy linkage,(3)it is suggested that policies should be adjusted and coordinated under different macro environments.From the perspective of other measures to enhance financial services for SMEs,(1)it is suggested to clarify the small and micro financial positioning of large,medium and small banks,(2)it is suggested to attach importance to the first loan and to further expand financing channels for SMEs,(3)it is suggested to continuously improve the applicability of financing and credit enhancement policies to the market,(4)it is suggested that the government should take into account both of universal benefits and key support functions of SME policies.