Research On The Influence Of RMB Cross-border Circulation On China's Monetary Policy

With the development of Reform and Opening in China and the improvement of China's comprehensive strength in the world,the international speed of RMB is also getting faster and faster.The cross-border circulation and usage of RMB has increased rapidly especially since the implementation of the RMB cross-border policy have been launched in 2009.In this process,the functions of RMB have been continuously enriched,the outflow and inflow channels of RMB have also been continuously developed.Although new breakthroughs have been made in the scale of RMB cross-border flow,the imbalance between outflow and inflow channels leading some of the outflow currency has been accumulated overseas,forming the RMB offshore market.At the same time,The interest rate difference between RMB offshore market and onshore market will generate arbitrage opportunities,and the RMB derivative effect of offshore market will bring impacts to the onshore market,which causes the academic circle and policy department worrying about the effect of China's monetary policy and financial stability.On the basis of previous scholars' research content,and referring the existing researches on the circulation of RMB,the influence of RMB internationalization and the influence of shore market on China's monetary policy.This paper analyzed the impact that RMB crossborder circulation caused on monetary policy transmission mechanism,the monetary policy intermediate target and the monetary policy implementation effect.Sample selects the quarterly data from 2011 to 2019.In the aspect of Empirical Analysis,this paper uses VAR model to test the impact of the RMB cross-border flows on monetary policy effects and draw the conclusions.This paper is divided into five parts: the first part,an introduction of this paper.This part elaborates the research background,significance,literature review,research content and methods,innovation and deficiencies;The second part describes the current situation and how to measure the scale of RMB cross-border circulation;The third part is the theoretical basis of the influence of RMB cross-border circulation on monetary policy.The fourth part,from three perspectives of monetary policy running system,such as transmission mechanism,the monetary policy intermediate target and the monetary policy implementation effect,launching an empirical analysis on the influence of RMB cross-border circulation on monetary policy.The fifth part,the perorations and some suggestions.