The Research On China’s Monetary Policy Independence In The Post-Crisis Era

In2008the global financial crisis erupted in round, the world economy was immersed in low ebb. Slow growth signs also appeared in China’s economy in2008, the problems inherent in the development of economy also gradually revealed. In order to avoid a recession, our government adopted economic stimulus. After the implementation of various policies, China’s economy may overheated, so the central bank repeatedly used monetary policy tools but achieved little success, the CPI is still in a continuous rise and a large amount of capital flows to non-real economy. Weak monetary policy independence leads to relatively weak monetary policy. This paper discusses China’s monetary policy independence, analyzes the factors that affect the independence of China’s monetary policy and puts forward appropriate policy recommendations.The introduction of this article points out that under the open economy, China’s independent monetary policy gradually weakened with the exchange rate reform and changes in the international economic situation.The first part is the introduction of the theory. It briefly describes the monetary policy transmission mechanism and monetary policy independence measurement and introduced the theory of monetary policy independence.The second part describes the evolution of China’s monetary policy independence.With the reform and opening up,China’s accession to the WTO and the gradual opening up of the market economy, China’s monetary policy independence is gradually weakening affected by various factors.The third part is the analysis of factors affecting the independence of monetary policy in China. From internal and external environment faced by China’s economy, this part analyzes the factors and the way that affect the independence of monetary policy in China.The fourth section presents policy recommendations. Which mainly includes:Improve the independence of the People’s Bank of China; Improve the bond market function and strengthen monetary policy; Continue to push forward the reform of the exchange rate system; adjust economic structure and reverse the double surplus situation; improve the domestic financial system and accelerate the process of marketing of interest rates.The goal of this paper is to analyze the factors that affect China’s monetary policy independence and put forward policy recommendations to ensure that our monetary policy has strong independence.