Chinese Monetary Policy Conduction Effect In The Money Market

From 1998 .People's Bank of China formally abolished on the scale of commercial bank's credit management .Commercial banks fully gained the rights of management. On this base, People's Bank of China's has carried out a series of reforms to the various links of monetary policy transmission mechanism ,indirect control of monetary policy transmission has been mainly set up in our country .Under this background. Money market as a monetary policy indirect conduction of the first market plays a very important role .Recently the monetary policy effected macroeconomic regulation and control is not satisfactory .2006, the central bank adopted a tightening of monetary policy, increase the statutory reserve ratio and financial institutions RMB benchmark interest rates for deposits and loans, the central bank lending has the "speeding" of all commercial banks issued 100 billion yuan of directional instruments. But in 2006 China Mobility is still growing. People's Bank of China in 2007, up more than 10 financial institutions, the RMB deposit reserve ratio of 5.5 percentage points, up three-month deposit interest rate 0.45 percentage point, six-month deposit interest rates 0.36 percentage point, the commercial banks to continue to strengthen the "window guidance" And credit policy guidance. However, China's investment growth rate is still high, the consumer price level rose faster, the international balance of payments continued to maintain large trade surplus. So. Conduction of China's currency money market study on the effectiveness of it is particularly important.So China's money market is particularly important.Firstly ,the passage analyzed the western monetary policy transmission from the perspective of theory ,divided into the monetary and credit .then ,the passage reviewed China's monetary policy transmission mechanism ,divided into three stages :monetary direct conduction from 1984 to 1993 .monetary policy direct and indirect conduction coexist from 1994 to 1997 .since 1998,the monetary policy indirected conduction mainly exist stage .Next ,the effect of empirical data analysis of China's currency market conduction of monetary policy effects .From the money markets, three sub-analysis carried out on the market, mainly by the unit test and cointegration test. The results show that China's money market in the conduction of monetary policy has three problems: First, the excess reservation of financial institutions over affects the statutory reserve policy conduction . Second , money market interest rates are not yet fully market oriented. Third , rediscount policy has been completely lost the regulating role of monetary policy. Secondly, this paper analyzes the in-depth reason of the low efficiency of the money market conducts the monetary policy, the paper will be for these reasons under three categories, namely, the shortage of the money market development,the central bank's monetary policy tools has imperfections and the reform of commercial banks is not yet completed .Finally, find out the reasons for the above proposed specific measures to solve, there are: further development of standardized lending market ,the development of the inter-bank bond market , and vigorously promote the development of securities markets; reform the deposit reserve system, and gradually reduce and ultimately eliminate the deposit reserve The interest rates further development and improvement rediscount policy, rediscount play the role of macro-control policies and speed up the comprehensive reform of state-owned commercial banks the pace of transformation and development of the non-state-owned financial institutions, the movement of tectonic commercial bank risk management system.