The Research On Transparency Of Monetary Policy In China

Because of the influence of some economic theories, such as hypothesis of long-term neutral monetary policy,theory of finite rational expectations, dynamic inconsistency of monetary policy, theory of public choice and the collapse of the Bretton Woods System and the happeniess of Great Inflation in seventies to eighties in last century.The monetary policy transparency first generated in West developed countries in early nineties of last century. The practice of monetary policy transparency made good policy effects generally in those countries,and lead to thinking of monetary policy in our country.This article attempts to prove our monetary policy also need transparency from the theories which promote the generation of transparency in Western Devo loped Countries and the practice of our monetary policy and central bank independence. Then we review the pratice of our monetary policy,use the modified index of E & G and the dynamic index of A & H to measure the regime transparency and behavior transparency of monetary policy respectively,.then use the mean and standard deviation of inflation and GDP growth rate and Basic Coefficient of Effectiveness to test the effectiveness of monetary policy in our country,the result showed the transparency of monetary policy also has a positive Policy effect. However,the monetary policy transparency measure result shows our country's monetary policy transparency is still low remain have some problems,such as monetary policy objectives are vague,the disclosure of policy information is incomplete,the communication with the public is inadequate.then put forward some improvements such as strength the independence of central bank,further defined the objectives of monetary policy,strength information disclosure to improve our monetary policy.