Research On The Influence Of The Monetary Policy Instruments Impacting To The Money Market Interest Rates In China

The monetary policy is the essential part of the state’s macro control,since 2006,the central bank has integrated the use of monetary policy tools to control the macro economy,and achieved good effects.As the main place of commercial banks and other financial institutions’ short-term capital allocation and liquidity management,the inter-bank money market is also the basis for the central bank to use the indirect monetary policy tool of macroeconomic regulation and control.With the gradual deepening of market-oriented interest rate and financial market reform,money market interest rates play an increasingly prominent role.The year of 2014 witnessed great changes of China’s macro economic background,thus China formally entering into the new normal economic development,so there is great need of creating suitable monetary and financial environment to service supply side reforms.Large fluctuations in money market interest rates may cause adverse effects on the economy,so under the research background of economic new normal and monetary policy framework transformation during "13th Five-Year",there are both theoretical and realistic significance in studying the influence of the money market interest rates from the perspective of the operation tool,not only benefits the choice of reasonable collocation of monetary policy tools,but also improves the efficiency of monetary policy and stable monetary market.Based on the combination of theoretical research and empirical analysis,Firstly,the paper expounds the theoretical basis and mechanism of the influence of monetary policy instruments on the interest rate of money market,and builds the relevant theoretical model on this basis;Secondly,it analyzes the operation and utilization of monetary policy instruments and the trend of money market interest rate in stages,and analyzes the impact of the operation of monetary policy tools on market interest rate,as well as reveals the quantitative law of interest rate on money market;Thirdly,we construct the vector autoregressive VAR model on the interest rate of money market,and analyze the influence and direction of each monetary policy tool;Finally,based on the conclusion of empirical analysis,also China’s macroeconomic situation and the development of financial market background,the paper pust forward some suggestions to improve the effectiveness of China’s monetary policy tool operation regulation:On the one hand,the current interest rate marketization is focused on improving the interest rate transmission mechanism,the central bank needs to use the open market interest rate operation and lending convenience tools to guide short-term money market interest rates;On the other hand,there is great need to establish the flexible and appropriate interest rate control model,cultivate the appropriate market benchmark interest rate indicators,and further enhance the importance of money market interest rates in the central bank policy control policy.Through further enrich and improve the monetary policy toolbox,we can make it to enhance the flexibility and effectiveness of monetary policy operations.