Inflation Targeting And Discusson On The Applicability Of China

Since the 1990's, more than 20 countries have adopted inflation targeting regime and has achieved good results. More and more countries begin to pay attention to the institutional framework.The Inflation Targeting played a positive role in lowering inflation level, strengthen monetary policy transparency and credit degree, improving monetary policy efficiency, improving an inflation pounding. The announced inflation target on inflation is a two-way constraints. The system is an important tool against inflation for Central Bank, also is the monetary policy system to combat deflation. At present the substantial liquidity released by the implemention of easing monetary policy in order to ensure the economic growth in the short term will increase the uncertainty of future economic development and bring the danger of inflation when the economy recovers.Therefore, the in-depth study and consideration of the inflation targeting monetary policy regime and to explore the applicability of it in our country are of practical significance and policy significance.First of all, a dissertation on the connotation of inflation targeting, compared the exchange rate, money supply and inflation from the perspective of Nominal anchor,introduced the framework for the design of the system; Then investigated for the monetary policy in practice of Canada, the United Kingdom and the Republic of Korea's separately ,and got the enlightenment to a country's monetary policy operations on the basis of the effectiveness of the countries who had put the inflation targeting into practice.It includes:put "name anchor" system into practice,strengthen the monetary policy transparency and monetary policy operation should have prospectivity especially, perfect price type tool of monetary policy system unceasingly and realize elastic exchange rate step by step. Next,talked about the applicability of the system in our country. This paper thinks that the inflation targeting makes the direction according with our country monetary policy。Mainly manifested in the following:First, Inflation rate of monetary policy on behalf of our country are the realistic choice of anchor;Secondly, Inflation Targeting unify the rules and camera choices, be able to resolve China's monetary policy norm problems. Satisfy the needs of our country's macroeconomic regulation and control; At the same time, Inflation targeting system accords with development of our country monetary policy target telling a demand; And Inflation targeting system is consistent with enhancing central bank independence of our country's reform path. Finally, analyzed the conditions for the implement of inflation targeting in our country, and our country to adopt inflation targeting has a favorable condition but there are also some constraints. In response to these constraints,made recommendations on how to achieve the system in the respects of the interest rate, foreign exchange policy, the central bank and open market operations.It is a dynamic, evolutionary process for implementionc of Inflation targeting regime in China. We should be adhere to the relevant system-building, and steadily push forward the reform in order to create the conditions for putting the system into practice and ensure its effective operation.