The Research Of Monetary Policy From 2007

Since the early 2007, there is a lot of amazing changes happened in monetary and financial fields, the increasingly open Chinese economy is no longer able to be safe. China is currently facing a need to prevent inflation but also to prevent the plight of the economic downturn; China is not alone facing the problem but a world problems. In 2007, China is starting inflation; tight monetary policy is brought out. But at the end of January 2008 snowstorm in southern China and the earthquake in Sichuan Province in May, together with the U.S. economic downturn, China's economy is facing the threat of economic slowdown. The main purpose of the study is to use monetary policy, while maintaining stable economic growth and solving the plight of China's inflation.This paper is divided into five chapters. The first chapter of the article topics background and reasons of inflation, the effectiveness of monetary policy research has done a literature review and presented the framework of the contents of the article. Chapter 2 introduced the system of the objectives of monetary policy, monetary policy and the effectiveness of the research results were reviewed, such as the Keynesian school of thought, currency and schools of thought, rational expectations school effectiveness of monetary policy were different interpretations, effective currency is the currency of the intermediate goal of achieving macroeconomic effects, this is the central government policy-making purposes. Chapter III first introduced the 2007 inflation in China, and the reasons for an analysis of the final status of China's inflation were analyzed and future trends in the inflation forecast. Chapter IV the first overview of China's monetary policy was introduced, the China's monetary policy in 2003 to 2006 was reviewed and summed up, the next three major tools of monetary policy conducted, and the third chapter of inflation in China. The issue of monetary policy in governance programmed, the last of the effectiveness of the existing monetary policy was summed up. Chapter V is the policy proposals, according to results of the analysis of the previous chapter on China's macro-economic policies, the Chapter put forward policy recommendations.