An Empirical Study Of China's Monetary Policy On Balance Of Payments Structure

Balance of payments structure as an important hub of connecting domestic and international economic plays an important role in the process of economic development of a country. In the current context of domestic and external imbalances, the adjustment of our balance of payments structure, not only help to promote the restructuring of the domestic economy, but also conducive to the improvement of China's economic status. Throughout China's economic development, both the total foreign exchange reserves growth, or the double since 1994 continued surplus in the structure, are revealed on the restructuring of China's international balance of payments is imperative. Therefore, how to adjust the structure of China's international balance of payments is a key issue.Because the international balance of payments is one of the objectives of monetary policy, so I chose by adjusting monetary policy to achieve a balance. This research mainly through the establishment of dynamic Mundell - Fleming model to analyze the monetary policy of the international balance of payments structure, and from the four channels of monetary policy: credit, exchange rates, interest rates and asset prices on the international balance of payments Structure of the conduction mechanism were described. And through practical analysis and empirical analysis of the structure of China's balance of payments effects of monetary policy to verify. Analysis showed that monetary policy through the international balance of payments significant impact of the difference between the structure, through credit, interest rates, exchange rates and asset price channels. Through monetary policy adjustments on the balance of payments structure is feasible. Meanwhile, with China's national conditions, this paper analysis the causes of that the exchange rate and interest rate policies inefficiency affect the international balance of payments structure.In order to better regulate the international balance of payments structure, this four-point proposal put forward for analysis in this paper and our national conditions: using the tilt of the credit policy to regulate the current structure; to promote China's exchange rate system reform; deepening the country's interest rate market; adjust the difference structure of foreign exchange reserves.