文档介绍：ary Policy and Its Validity in China
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专业(方向): 国际经济与贸易实验班
Abstract:
After what may be described as dazzling ary policy changes from “tight” in 2008 and “moderately loose” during 2009-2010 to the current “prudent” policy, PBOC is now focusing more on establishing a system framework for prudent macro financial management. This marks a new era for China’s ary policy control. Reviewing current ary policy and scrutinizing its validity will carry a significant impact for enhancing China’s ary and financial theory and policy practice.
This essay explores the issue of current ary policy and its validity in China. It gives an overview of ary policy in China and discusses 4 ultimate goals of ary policy in details. The essay further demonstrates methods of PBOC which are used to implement policy and then evaluate the validity of each method one by one. With the data of reserve requirement ratios and loan and deposit rates in recent years, the essay illustrates the flaw of current ary policy and give reasons for that under detailed analysis.
Key Words:
ary policy, objectives, open-market operations, reserve requirements, market-based interest rate
1. Overview of ary Policy in China
A ary policy system includes the ultimate objective, intermediary objective, and operation instruments, and so forth. It is a process by which the ary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability.
There are two kinds of ary polices. Narrow ary policy means that the central bank uses different tools to manage interest rate and money supply so as to achieve some specific goals such as low employment and economic growth. Generalized ary policy means all government, central bank and other related departments’ activities toward currency.
After what may be described as dazzling ary policy changes from “tight” in 2008 and “moderately loose” during 2009-2010 to the current “pru