Research On The New Austrian School Of Monetary Theory

The new Austrian school of money theory focuses on micro analysis,taking individual action as the starting point,based on subjective utility theory,focusing on the role of individual inner thoughts in behavior choice,and providing a new perspective for analyzing the mechanism of monetary policy.China’s new economic norm requires China to improve the quality of economic development as the goal,to industrial restructuring and supply side reform as one of the main means,which requires China’s monetary policy to stabilize the purchasing power of money as the goal,and the New Austrian school that the sole goal of monetary policy Is a stable monetary purchasing power,the two goals are consistent,the Austrian school of monetary theory for China to develop a stable monetary policy with Chinese characteristics has an important reference.The first three chapters of this paper systematically analyze the New Austrian school theory of money,including methodology,the origin and function of money,the mechanism of currency to economy and monetary policy.The fourth chapter is the evaluation of the New Austrian school of monetary theory and its enlightenment to China’s monetary policy.The New Austrian School applied individualism and subjective value to monetary theory,reflecting the philosophy of humanism.The New Austrian School advocates the reduction of all economic phenomena to individual behavior,taking individual behavior as the starting point,subjectivism as the analysis of ideas,based on the non-neutral currency,from the micro-level analysis of the impact of money on the economy,concerned about changes in monetary relations interest rates,Market price and resource allocation and other aspects of the impact of personal analysis of these changes to make the market reaction,that the effect of monetary policy analysis should pay attention to the micro level.But the information asymmetry,personal knowledge is not comprehensive and other factors lead to the subjective evaluation of the moment is changing,can’t grasp the government to control the economy outweighs,whether it is inflation or tight monetary policy,are not conducive to economic growth,against the government regulation currency Supply.But China is not a completely liberal market,China’s national conditions determine that China can’t give up the regulation of the amount of money.The fourth chapter draws lessons from the new Austrian school of money theory has a unique analysis of the view that China’s monetary policy should adhere to the stability of monetary purchasing power as the goal,to improve monetary policy transparency,increase the role of credit policy.