Analysis And Research On The Coordination Of China Currency Policy Tool

As a start point of the conduction process of currency policy, currency policy tool is one of theimportant members of currency policy system. Currency policy tool is the direct approach of the dailyoperation of currency authority and a conductor of the currency policy conduction process. In order to dealwith the effect and stimulation to domestic economy development of global financial crisis in2008, thecentral bank raised the deposit reserve rate22times from Jan.25th,2008to the end of2011and that of thebenchmark interest rate9times from Oct.9th,2008to the end of2011. Nearly during those two periods, billissue limit and frequency of the central bank are even more serious. The enhancing frequency and intensityof the operation to currency policy tool from the central bank have attracted many scholars at home andabroad.This thesis is mainly focus on three points. Firstly, to classify and summarize the varieties andcharacteristics of the currency policy tool in theory, and then to propose the definition of coordination.Secondly, to analyze and simply evaluate the focus points and actual use of the currency policy, which isbased on a theory that direct, two-way and indirect regulation are the three phases of the developmentcourse of china currency policy tool due to its regulation way. Thirdly, to measure the coordination extentof china currency tool after inspecting the coordination of selected currency policy tool and data section byVAR model, and then to get the result from analyzed date. In conclusion, based on above theories whichare analyzed, some policy proposals are necessary to put forward: collocation use of currency policy tool,improvement of public market business, reasonable scale of foreign exchange reserve to remit it, promotionof rate marketization.