Our Country's Choice Of The Monetary Policy Medium Objective During The Economy Transition Period

According to the basic theory of the monetary policy, monetary policy's operating frame and process concern four variables:policy tools, operating objective, medium objective and final objective. Under the condition of market economy, the central bank can't directly regulate and control the variable of the final objective by using and adjusting monetary policy tools,but through affecting the financial variable of medium objective. The medium objective of monetary policy which is situated in between operating objective and medium objective, is adjusted to the special level via policy tools by central bank according to the fixed regulation, as a result, it can influence the index of the final objective's realization situation. The final affect of monetary policy is decided in a high degree by the choose of medium objective,so the correctness of the medium objective selection is extremely important to carry out the monetary policy effectually.In the early time, monetary supply amount plays an active function as a medium objective that inflation was almost eliminated, commodity prices were steady. But, because of the economic transition in China, the economic development in high speed and the changes in financial reform, there is some difference in the relation between monetary supply amount and final objective on the control and abserve, basic monetary supply amount is out of control, monetary multiplier is out of calculation, circulating speed someytimes is high and sometimes is slow. At present, china is in a key moment of the economic transition, the problems, whether give up the medium objective of monetary supply amount or not, whether can make another choose or not, are both worth studying, also it is the meaning of the selected topic in this paper.The paper includes four parts. The first chaper is introduction, the content of the part includes raising the analysis theory and putting forward the research background; the content of the second part is theory basis of the monetary policy medium objective, explain the definition of the medium objective and it's function in the transmit-process; In the chapter three, the development process of the medium objective both at home and abroad are introducted; finally, in the forth part, makes some tentative approach on the base of choosing inflation ratio as medium objective.