Research On The Influence Of The Monetary Policy Instruments Impacting To The Intermediate Target In China

The monetary policy is the essential part of macro economical policy. The process includes "Monetary Policy Instruments - Operative Target - Intermediate Target - Ultimate Target". As the first stage of monetary policy, the efficiency of the MPI impact to the intermediate target is directly related to the effectiveness of China's monetary policy strength of the whole. Since 1984, the PBOC uses a series of MPI as the means of the macro economical policy and successfully achieved the target in the mid-1990s, and solved the problem of deflation in the early 21st century. Since 2002, the problem of excess liquidity became a new challenge of monetary policy. Follow the thinking of how to use MPI, both of the research on the efficiency of the inside channel of the monetary policy conduction mechanism and how to choose the suitable instruments and intermediate target has realistic and theoretically meaning monetary policy conduct and stable development of the economy.Firstly, the dissertation analyzed the Theoretical basis and the transmission mechanism of which the MPI impacts to the intermediate target, summarized the inside channel and the outside channel of the monetary policy transmission mechanism, Description the monetary multiplier effect and the liquidity effect; secondly, according to the difference of the MPI and intermediate target and the characteristics of the Macro-control, the paper indicated the changes of the monetary policy instruments , the money supply and the Credit scale respectively in the period of 1984-1993,1994-1998,and 1998-2007. then, based on the Statistics method , The paper establishes a VAR model of internal transmission mechanism including reserve requirements,re-lending,rediscount,foreign exchange,7 days of national inter bank interest rate monetary base,M1,M2 and so on. It shows that reserve requirements has the most influent to base monetary, the second is foreign exchange. At last the paper puts forward suggestions to improve the efficiency the monetary policy instruments of our country. On the one hand, make sound decision on the choice and the Portfolio of the instruments, At the same time strengthen the sterilized intervention, reduce the obstruction in the internal channel of monetary policy transmission. On the other hand, we should accelerate the construction of diversified commercial financial intermediation system, develop the money market and other financial market system, and provide a sound external environment in which the monetary policy instruments can improve their efficiency.