The Analysis Of Our Country's Deposit Reserve Policy Effect

With the development of the economy, deposit reserve policy becomes a very important monetary policy. The central bank controls the inflation through changing the rate of deposit reserve. Our country adjusts the rate of deposit reserve frequently from2006, every adjustment has different effect on economy, the policy effect and effectiveness are also different. This paper mainly has an analysis on what impact the deposit reserve has on money supply, base money, price level and gross domestic product.In the study, qualitative analysis and quantitative analysis are combined to use, VAR method is selected to do research on the five factors.This paper is divided into five parts: the first part is the introduction. First it shows the research background, research significance of the article, the research ideas, research methods and research framework, and then the literature review at home and abroad is described. The main content of second chapter is the development of the reserve. It is divided into two parts, the first part is mainly a theoretical introduction to the deposit reserve, including the generation of reserve and main content, the role of the deposit reserve and the advantages and limitations. The second part mainly describes the evolution and development of China's deposit reserve and the reason for adjusting the deposit reserve in China in recent years. The third chapter is mainly about qualitative analysis on the deposit reserve influencing factors, finally, have research hypothesis on the reserve requirement's effect for these factors. The fourth chapter is mainly about quantitative analysis on the select factors. Having unit root test, Cointegration test, the model stability test, granger causality test, then VAR model and VEC model are established, and then the VAR impulse response analysis is used for these five variables.The fifth chapter is conclusion, this part mainly makes a summary according to the resultof empirical test and has a conclusion. Then the policy suggestions are put forward according to the conclusion.According to the research results, as an important monetary policy, deposit reserve policy's influence on the money supply, base money, price level and gross domestic product has different time delay and effect. The government should pay attention to the time lag of the deposit reserve policy and the duration of the deposit reserve policy effect,cooperate with other policy instruments actively.