On The Central Bank’s Monetary Supply Quantity Control Effectiveness Research

After30years of reform and opening up, our country from the originally closed economic system is gradually integrating into the global economic integration,opening and marketization. Especially in2001November after joining World Trade Organization, China’s economy in the gradual transition to open economic system, more opening economic environment at home and abroad to our economic and financial development and provide a vast opportunities and hitherto unknown conditions at the same time, also on China economic growth bring concussion and challenge, make the economy of some important variable and its normal trajectory deviation, causes the central bank or government economic policy adopted by reducing or even failure. Monetary policy as a central bank in order to achieve the goal of macro economy the influence economic activities are important economic policy, among them, the money supply as an intermediary target of monetary policy, under the condition of open economy, the important inside unripe variable faced with our country macroscopical economy environment change suits, is becoming an urgent need to solve the problem of economic theory and policy practice.From the perspective of the institution of writing-off instrument, this article concerns the relationship between our nation’s currency supply and foreign exchange supply.It finds out that because of the institution of writing-off instrument,enormous numbers of foreign exchange is collected to bank system,which is not only making the incoordination between the demand for foreign exchange and the supply,which is also increasing our nation’s basic currency supply beyond the central bank’s control.The consequence is that the inflation is forming especially when the economy is more and more open and boom.With a conclusion that the effectiveness of our central bank’s control of the quantity of the currency supply is decreasing,this article comes up with three suggestions in the end.