A Comparative Study Of Implementation Effect Of The China And United States’ Monetary Policy After The Subprime Crisis

2007outbreak of subprime crisis in the United States. causing volatility in the worldeconomy. All major economies have a strong impact, as the source of the crisis in1933theU.S. economy has suffered since the Great Depression of the biggest recession: the collapseof a large number of financial institutions, many of them well-known investment banks andfinancial institutions: JP Morgan Chase, housing to Fannie Mae and so on. Continueddeterioration of bank balance sheets of financial institutions; sharp rise in U.S.unemployment, increasing social unrest. To save the U.S. economy, the governmentintroduced a series of economic policies to stimulate economic recovery. Which launched inlate2008the Federal Reserve ’s loose monetary policy not only had an impact on thedomestic economy, and the impact on the global economy is more far-reaching. Because, asthe world’s largest economic power which is recognized as the world currency dollar on theworld currency. Accommodative monetary policy to force the dollar, causing economicvolatility worldwide. After China, the world ’s largest developing country is also the largestholders of U.S. debt countries, the introduction of loose monetary policy in the United States,faced with potentially huge inflationary pressure and outlet pressure. In order to ensure agreater degree of national economy from the impact of China since the end of2008, has alsoimplemented a series of economic stimulus policies, including40,000trillion economicstimulus plan is most compelling. It is also a loose monetary policy, but the two countries hasproduced different economic results. Therefore it is necessary to study the two countries afterthe implementation of the monetary policy easing their economic effects were studied.Firstly, by analyzing the situation of Sino-US economic and status in their respectivecountries, to grasp the general direction of economic policy between the two countries andfocus from the objective in implementing loose monetary policy; followed by analyzing theembodiment of the two countries and loose monetary policy tools to analyze variousmonetary policy tools due to differences in macroeconomic conditions caused by selection;once again through the collection from2008to the end of2013China and the U.S. money supply data, CPI data, unemployment data and foreign trade data and graphed by byempirical methods to analyze the differences between the two countries after theimplementation of the economic policy economic situation; using Mundell Fleming model(MF model) by the method of argumentation theory Sino-US differences in the effect ofmonetary policy analysis. Through the above analysis: the United States as the world’s firstlarge spillovers economic power is much greater than its easing policy to stimulate its effecton the national economy, the effect of U.S. monetary policy comprehensive domesticeconomic situation and its impact on foreign economies, in general, reached U.S. rescue theireconomies, to promote economic recovery as soon as possible. China, as the largestdeveloping country, is one of the most affected by the depreciation of the dollar in thecountry. Loose monetary policy in effect make their economies subprime crisis is stillgrowing at around7percent, but because of the gap between their financial marketdevelopment, a large amount of the money supply is a problem of how a virtuous cycle.Because at any time will be faced with potential inflation and economic recession.