A Study On The Effectiveness Of Structural Monetary Policy Tools In China

In the context of "supply-side structural",China’s economic development is facing two major challenges: "innovation-driven" and "industrial transformation and upgrading".Since 2014,China’s central bank has created various "structural" monetary policy tools to achieve "precision","direction" and "targeting" of liquidity,drawing on the successful experience of foreign countries.Since 2014,China’s central bank has created various "structural" monetary policy tools to achieve "precision","targeting" and "orientation" of liquidity,drawing on successful foreign experiences.Although the current problems faced by China are different from those of developed countries such as Europe and the United States,in the context of the "new normal",there is an urgent need to abandon the "sloppy" development model of the past and carry out "structural adjustment In the context of the " new normal ",there is an urgent need to abandon the past " rough " development model and make " structural adjustments ".Since the outbreak of the new pneumonia epidemic,the long-term factors and short-term shocks affecting the operation of micro,small and medium-sized enterprises have been intertwined,and the financing problem has become more serious." The paper begins with a scientific assessment of the relevant literature at home and abroad.Firstly,the domestic and foreign literature are summarized and explained the topic selection and research significance;secondly,this paper discusses the structural monetary policy tools,analyzes the target setting and transmission path,and analyzes the differences with the traditional monetary policy;Thirdly,this paper analyzes the structural monetary policy in China.Based on this,this paper intends to use the VAR model to analyze the impact of four structural monetary policy tools from four aspects:price effect,economic growth effect,structural effect and interest rate effect,and give relevant policy suggestions on this basis.Through theoretical and empirical studies,this paper concludes that structural monetary policy tools,as a product of the central bank’s injection of liquidity into specific areas as well as meeting the financing needs of multi-level subjects,are tasked with the important task of achieving four major macroeconomic objectives,providing appropriate inclusive financial services for micro and small enterprises,the three rural areas,public services and other shortcomings through credit,expectations and interest rates.From the empirical results,both price-based and quantity-based monetary policy instruments have certain effects on the development of the economy,but in comparison,the effects of price-based monetary policy instruments are more limited,while the quantity-based monetary policy instruments represented by PSL are somewhat more effective on the economy;all the various structural monetary policy instruments have a smaller effect on prices,and all of them can alleviate to a certain extent the inflationary pressure caused by the money supply Apart from PSL,all structural monetary policy instruments have effectively promoted the support for small and micro enterprises and achieved the purpose of restructuring the economy.All the price-based structural monetary policies have a good effect on interest rate control,but the targeted downgrades have a greater effect on interest rate control.In the long run,the impact of structural monetary policy instruments on the four economic objectives is relatively limited,but in the short term they still have different degrees of positive effects on the economy.In response to the above findings,this paper puts forward several suggestions:focus on policy synergy,improve the policy framework,promote the construction of a multi-level market system,and strengthen the mechanism for the supervision of capital flows.