Analysis Of The Effectiveness Of Monetary Policy In China

There is great divergence about the effectiveness of monetary policy in the western economic theory of main schools. And accordant theory about it has not been founded in lots of positive analysis. In practice, the effectiveness of monetary policy has different effect in different countries and even in different periods of one country because of different economic backgrounds and diverse choices of policies and strengths of implement. This paper draws lessons from the way of thinking of latest research, casting aside a complicated theories study, to analysis the effectiveness of monetary policy of China from 1984 , and put forward homologous suggestions for the factors which influence our country monetary policy effectiveness.Besides the introduction and the conclusion,this paper divides into four chapters altogether:Chapter 1, the summary on theories of monetary policy effectiveness .The analysis of this part mainly includes:(1)Essential economic school of thought,such as Keynesian and Monetarist and the school of logos anticipation etc.,.(2)Conduct the research of mechanism to various currency(policy).(3)Conduct the research on Monetary policy target, monetary policy tool, monetary policy rule etc.Chapter 2, the analysis of the implement of monetary policy in China .This part analyzed that China how to establish and implement monetary policy from 1984. this part was also divided into three stages:1984-1992 is a first stage, 1993-1996 is a second stage, 1997 to now is the third stage .from these analysis, I try to find out the reasons that make the implement of monetary policy good or bad in different periodsChapter 3, analysing the factors that influence the monetary policy effectiveness of China.Basing on fore two chapters, This part completely sums up the factors which influence monetary policy effectiveness ,and points out these factors can be divided into two sides:one is the general factors of the monetary policy namely theories factors, such as time lag of monetary policy , individual's rational expectations, velocity of money, Monetary Base etc.;the other is some special factors that influence the monetary policy, such as financial system change, imperfect of the social credit system and the difference of economic development in China.Chapter 4, put forward to the suggestions for building up the effectiveness of monetary policy of China.Based on the analysis of the theories and the actual sides, and the various factors which restrict the effectiveness of monetary policy of China, this paper puts forward corresponding suggestions.so,I think two aspects Can be done for improving the effectiveness of monetary policy .one is Positioning the monetary policy itself such as what it can do or can't, and actually what is the monetary policy adjusted to control of the mode.the other is the social economic environment which improves monetary policy movement...