A Study On Neutral And Non - Neutral Issues In Chinese Currency

With the continuous development of market economy system perfect, the monetary policy tool is widely used by the government, to adjust the economic development, but increasingly highlight the effectiveness of monetary policy. Currency neutral with the neutral is an essential prerequisite for the effectiveness of monetary policy, monetary economics about currency neutral with the neutral problem has always been one of the focus of the discussion topic, so far there is still no definite conclusion, based on this background, it is necessary for China’s monetary nature of the problem in-depth research. This paper adopts the method of combining theoretical analysis and empirical analysis, first of all, from the perspective of the research results so far, the currency neutral on the classical theory and the neutral, carding and summarizing all scholars to the problem of currency neutral with the neutral point of view, and summarizes the influence currency neutral with the neutral reasons include price environment, such as viscosity, public expectations, economic development, on the basis of summarizing the currency neutral with the neutral effect on the effectiveness of monetary policy, put forward the theoretical framework of this article. Then in China since 1998, review the effectiveness of monetary policy implementation, and since 1998, the money supply, the growth rate of output and price level three factors comparison, analysis to calculate since 1998, the money supply M2 and the change of the level of output amplitude basic consistent, but the price level change amplitude is small, and lag behind the change of the M2, money is not neutral state, sticky prices still exists, increase or decrease the money supply will bring output corresponding change, and the price level will not significantly affected by fluctuations, monetary policy transmission can be effectively. The fourth chapter the empirical analysis for China’s currency in the short term nature, using money supply since 2008, the level of output, the price level three elements of quarterly data for empirical research, through the VAR model analysis of money supp 发 ly to the influence degree of the level of output and price level, the results show that since 2008, money is neutral and effective monetary policy, with the continuous development of financial markets, however, more and more money to flow to the financial markets, the role of the money supply in output level is gradually weakened. Finally, the article put forward the corresponding policy recommendations according to the result of empirical analysis, the government can use monetary policy to stimulate economic growth in the short run, also need to effectively guide the public expectations, at the same time, we will deepen reform of the financial structure and prevent the risk of asset bubbles.