Study The Effectiveness Of Monetary Policy In Open Economies

Adjusts in our country with in the promotion economy development multitudinous methods, the monetary policy is one of most important tools.Since China's opening and reform, central bank has adjusted macroeconomic running effectively by applying monetary policy and his ability of employing monetary instruments has been increasingly proficient.But in recent years, the effectiveness of the monetary policy has been reduced. Expanded policy failed to control deflation and tight policy by raising deposit reserve rate failed to restrain the trend of economic over-heat. Various factors can account for the situation. Exchange-rate regime and regulation of capital account are important among these factors.In this article, the author brings the exchange-rate system,the circulation of capital condition and the monetary policy into line with completely under a research frame, has comprehensively systematically analyzed the exchange-rate system and the circulation of capital condition to the effectiveness of the monetary policy.Full text includes four parts: The first part, elaborated the definition of the effectiveness of the monetary policy. In this foundation, reviewed M-F model, Trilemma of the exchange rate regime and the expansion"impossible triangle".These are famous about the classical theory of the effectiveness of the monetary policy in the opening economy.And has carried on the simple analysis appraisal to the above theory serviceability, takes the full text the theory basis and the instruction.The second part, comprehensively systematically separately elaborated the exchange rate-system and the circulation of capital condition to the effectiveness of the monetary policy. Under the opening economy condition, the exchange rate not only is a variable that affects the trade revenue and expenditure, but also becomes an important variable that affects macroeconomic policy of a country, international balances of payments, the domestic price level and the employment.Exchange rate system influences monetary policy ultimate objective,and the currency supplies are not easy to control because that our country forces to complete a sale collects and the maintains exchange rate stably . The foreign exchange occupation becomes the main channel of the currency supplies.The...