The Study Of The Effects Of China’s Directional Regulation Of Monetary Policy

Since the eighteenth congress, the Chinese government has been clear about the “strategic restructuring of the economy” as the main goal of economic development strategy, this shows that the economic development strategy in China focus not only on economy growth, but also on the adjustment of structural imbalance problem, so as to promote the comprehensive, coordinated and sustainable development in every area.The regulation of monetary policy is an important economic macro policy, its application at this stage can consider in an innovation way, in response to the current imbalance in the structure of our country. The directional control monetary policy just then arises at the historic moment.Directional control of monetary policy aims to deal with the current decline in China’s economic growth and structural imbalances. This paper based on the current characteristics of economic operation in China, in reference to the structural monetary policy, on the basis of abroad to accurately define directional control of monetary policy, then systematic analyze of the specific conduction mechanism of directional control various monetary policy tools, and then make an empirical analysis of the policy to “three rural” areas, small micro enterprises, real estate sector and the actual effect of economic aggregate and make a conclusion: Directional control of monetary policy has a significant role to the above areas, on the one hand, reducing the Directed Lending Rates can reduce the financing cost; On the other hand, increasing the Directional Loans can adjust the credit structure. At the same time, the policy also has a certain effect on the stability improvement of the economy. But the duration of the effect of this policy is short, like a temporary bailout policy which has the characteristics of fiscal policy.Finally, based on the conclusion of above study, this paper analyze the influence factors of the effect of directional control monetary policy, and based on this, put forward the suggestions: strengthen supervision of directional flows, and strengthen the mortgage guarantee specific areas and argues that China’s economy sustained, balanced development should be in the hope of reform of the system rather than a temporary bailout policy.