A Comparative Research On Monetary Policy Operation's Regime From The Viewpoint Of Taylor Rules

Current account and capital account of balance of payments of China are always double surplus for our industry development model based on investment and export driven in the past years, but domestic consumption of our country, one of three carriages, are always not enough compared with investment and export, therefore, the problems of unbalance economic development in our country are more and more serious. Unfortunately both price leverages to adjust inner and outer economic equilibrium can't apply for their fundamental operation function now, the monetary policy's independence of center bank were shocked rather serious. Under such surroundings in our country, what monetary rules, that they not only can keep the independence, but also can realize the inner and outer economic equilibrium, should be conducted by center bank? I think that we can get some enlighten- ment for our future monetary policy's operation regimes building from the viewpoint of Taylor rules to study US Fed , England Bank and our monetary policy's operation.The article firstly indicated the research background, the development process of Taylor rules and structure organization. I introduced the model building and extension and showed the related ground and implication in the second chapter. Chapter III directly reviewed the evolution process of media object and transmission mechanism of monetary policy, the operation characteristic and Taylor rules' application in both monetary policies, then analyzed their intrinsic rules of monetary regulation of both US Fed and England bank. After retrospect their successful experiences, we began to review the evolution process of final object and media object, transmission mechanism, operation characteristic and problems of monetary policy of China such as the index of inflation response to interest rate smaller than 1 and the index of exchange rate response to interest rate larger than 1 indicates that our center bank has pay attention to exchange rate strongly, then analyzed empirically our monetary regulation and compared these results with the related items of US Fed and England bank, finally designated the problems of our monetary operation. Chapter V offered some ideas such as interest rate as media target of future monetary policy, exchange rate served as outer equilibrium tools, Taylor rules referred as the dimensions of our monetary regulation whether tightness and softness, and improving our monetary market and capita market. At the end of article, the author summarized all things what we have discussed.