Monetary Policy, Monetary Supply And Liquidity Management

Since 2008, the global financial crisis was caused by the US subprime crisis.China’s economy was also deeply affected.In order to stabilize the economy, to prevent sharp attenuation, the central bank issued four bonds. While the benchmark interest rate and deposit and lending rates dropping lower and lower.To some extent,loose monetary policy stimulated economic growth,But then it brought a series of economic problems.Compared to other developed countries,China’s ratio of M2/GDP is high in the overall state and may continue to rise in the future.But the shortage of money incident occurred in 2013, this also make people puzzled.Since society has a lot of money, why the money market would be so nervous ? Based on these economic issues,from the perspective of the central bank, in the transmission mechanism of monetary policy for the chain,article focus on specific analysis of the money supply,monetary liquidity problems.In this paper, monetary liquidity in the banking system is not monetary liquidity,but the last link mobility that monetary policy impact on the economy, Including public and producers’ currency liquidity.The paper follows the idea for asking questions, analyzing and solving in a three-step analysis.In the transmission mechanism of monetary policy for the main line. Combined money supply theory, By establishing Var model,indicating the direction for China’s macrocontrol liquidity, Which indicate the fact that the Monetary policy instruments for liquidity regulation effect is not obvious,finally we propose measures that How to manage monetary liquidity by central bank.The study includes three parts:first, a clear research subject,including currency liquidity concepts, liquidity definition and liquidity classification;Second, the main body of the article,including some theoretical and empirical parts.Theory portion includes money supply theory and macro liquidity management theory.By collecting some key empirical data,describe statistics about China’s current monetary overall liquidity.At the same time,combined with monetary policy at this stage, using common tool of monetary policy, select Indicators and establish Var model,analyze the impact of monetary policy on the real economy and output, living standards.Finally,we can draw a conclusion that effect of monetary policy from empirical analysis.Third,Combining the status of China’s current economic development and international experience, as well as the results of empirical analysis,finally,from the perspective of central bank conclude monetary liquidity management advice.The innovation of this paper is that the central bank from the perspective of macro research on monetary liquidity management,But most scholars analyze from the perspective of microscopic liquidity or commercial banks. Based on numerous scholars’ liquidity analysis of stability,this article from the origin of monetary liquidity, the perspective of monetary policy and the money supply by using the VAR model of quantitative analysis of monetary liquidity management in our country.