Research On The Effectiveness Of China’s Capital Control Under The Unconventional Monetary Policy

In recent years, with capital account is more opening, China is more closely with the international community,and with "open" and "change",the international economic turmoil will be more profound influence on China’s cross-border capital flows, put forward higher challenge to China’s cross-border capital management. "Open" is a long-term and inevitable goal, how to deepen the effectiveness of "open" in a good grasp of capital controls, to prevent abnormal conditions occur, especially in today’s world turmoil, slowing the spread of non developed countries influence conventional monetary policy in our country, our country must face the problem.This paper first describes the U.S. unconventional monetary policy and emerging market countries in unconventional monetary policy implementation, exit the reaction of the economic indicators, and analyzes the status quo of China’s cross-border capital flows. The status quo and then systematically combing China’s capital account can be redeemed and this year foreign exchange policy changes, to measure the degree of capital control in China through the legal system and regulations and economic indicators, and emerging market countries to measure the degree of capital account convertibility. Finally, through the empirical analysis of the effectiveness of China’s capital control, and put forward the policy recommendations.The main conclusions of this paper are:(1) since 2008, China’s capital account convertibility in the twists and turns on the short term, to deal with the non conventional monetary policy in developed countries to bring the impact of capital, adopt appropriate tightening policies in different period, strengthen the degree of capital control, influence effectively resist impact, and compared to South Korea and India and other emerging market countries and the convertibility of capital project in our country is still at a low level.(2) capital controls are effective in the short term. Non conventional monetary policy implementation and exit, the implementation of foreign exchange policy, in the short term to ease the pressure on the flow of funds, but in the long run, the pressure of capital flows still exist.(3) from the perspective of cross-border capital flows, China’s capital controls are effective to a certain extent. First, the implementation and exit of unconventional monetary policy in the United States does have an impact on China’s cross-border capital flows, but not the most important factor. Among them, direct investment, cross-border capital flows are affected significantly other investments, securities investment is not significant. Two is compared with emerging market countries, Brazil, South Korea, India, China’s cross-border capital flows since 2007 by the United States to minimize the impact of unconventional monetary policy.