Effectiveness Study of Chinese Monetary Policy Regulation on Economic Growth and Inflation

ثبت نشده
چکیده

On using monetary policy for macro-economic regulation, after the 1930s Great Depression when effective demand insufficiency emerges, Keynesianism proposes that proactive fiscal and easy monetary policies shall be introduced. His proposal is later adopted in Roosevelt’s New Deal, which greatly help USA climb out of economy recession and achieve prosperity over 20 years. After sub-prime mortgage crisis and European sovereign debt crisis, countries around the world consistently adopt Keynesian policies, that is, the positive fiscal and ultra-loose monetary policies. In particular, for monetary policy, the US has successively made two rounds of quantitative easing and started a third round recently. Many European countries have also taken measures likewise. In order to effectively cope with the financial crisis, the Chinese government has taken similarly relative easy monetary policies, which helps a lot in pulling China out of the financial crisis. However, this round of monetary easing also causes controversy in China. This chapter will be dedicated to in-depth study and discussion on the effectiveness of monetary policy regulation on macro-economic growth and inflation in China. Starting from the related theories on currency effectiveness and based on the Chinese reality, this chapter reviews and empirically analyzes Chinese monetary policies through the years, explores its role in macro-economic regulation, and thoroughly researches the correlation between money supply and Chinese economic growth as well as price level. These are of great significance in clarifying whether China’s current monetary policy is in line with the national condition and discussing how to optimize the current monetary policies to promote healthy economic development. This chapter will first review the development of China’s monetary policies and then makes empirical analysis to test the effectiveness of monetary policy regulation on economic growth and inflation. Chapter 2 Effectiveness Study of Chinese Monetary Policy Regulation on Economic Growth and Inflation

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

An Analysis of the Relationship between Monetary-Exchange Rate Policies and the public Debt and Theirs Effects on Inflation and Economic Growth in Iran

 Governments attempt to achieve the goals of low inflation rate and sustainable economic growth rate. The objective of this study is to analyze the roles of determinants such as the liquidity of money, weighted average of interest (profit) rate on banking deposits, exchange rate and the public debt on inflation and economic growth in Iran, using the quarterly data during the period of 1989-2008...

متن کامل

The Impacts of Monetary Policy on Macroeconomic Variables Assuming the Collateral Constraint

This study aimed to examine the effects of monetary policy on macroeconomic variables with regard to the collateral constraint. For this purpose, a dynamic stochastic general equilibrium (DSGE) was developed for Iran’s economic status. Two scenarios were considered as to account for the behavior of the central bank. In the first scenario, the monetary rule is modeled according to the GDP gap an...

متن کامل

Investigating the Role of Monetary and Fiscal Policy Tools on Economic Growth Using Dynamic Simulation and Fuzzy Control Approach

In this study, a macro-economic model consisting of twelve behavioral equations and fourteen identity equations was estimated with the aim of investigating the effectiveness of monetary and fiscal policies set out in the fourth and fifth development plans. In the estimated model, the variables of development expenditures, current expenditures and tax revenues are used as fiscal policy tools and...

متن کامل

Monetary and Fiscal Policy Interaction in Iran: A Dynamic Stochastic General Equilibrium Approach

Achieving the goals of price stability, sustainable economic growth, and the improvement of many economic variables require coordination between the monetary and financial authorities. In this study, a new modified Keynesian stochastic dynamic equilibrium general equilibrium model is introduced for Iran and in the framework of game theory, optimal policy of fiscal and monetary authorities are d...

متن کامل

The Impact of Central Bank Transparency on Inflation Volatility

Over the past two decades, central banks throughout the world have been moving towards greater transparency about policy decisions, the targets that they seek to achieve through those decisions, and their economic outlook of likely future changes. The Central Bank transparency is likely to be of great importance in increasing the effectiveness of monetary policy and reducing macroeconomic volat...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2017