Since the start of reform and opening in the late 1970s, China's monetary operation has undergone dramatic changes. The J-curve of Chinese monetary aggregate (total quantity growth) over the period between 1978 an...Since the start of reform and opening in the late 1970s, China's monetary operation has undergone dramatic changes. The J-curve of Chinese monetary aggregate (total quantity growth) over the period between 1978 and 2005 illustrates the changes in total quantity growth, while the changes in monetary structure are shown by an X-curve, and are attributed to the increased ratio of money in circulation to savings (money serving as a store of value) from 6:4 to 4:6. Therefore, the key factor in maintaining supply-and -demand equilibrium in monetary supply has shifted from the supply side to the demand side. The monetary aggregate has influenced the decrease in commodity prices. However, composite prices including assets, reflect the equilibrium of monetary supply and demand. In the face of the changes in Chinese monetary operation, attention should be given to inflation pressure and highly concentrated financial risks in the banking system, and the regulation of monetary demand should be emphasized. The regulation of monetary aggregate and monetary structure are both of vital importance.展开更多
The great expansionary policies undertaken by the main central banks of the world since the outbreak of the world financial and economic crisis in 2008 did not produce a satisfying recovery of the real economy especia...The great expansionary policies undertaken by the main central banks of the world since the outbreak of the world financial and economic crisis in 2008 did not produce a satisfying recovery of the real economy especially in Europe. In order to identify the causes of this failure, it became necessary to deepen the analysis of the transmission mechanism of monetary policy, and to investigate if there are some obstacles hampering the functioning of this mechanism. The scope of the present papers to analyze some short comings of the transmission mechanism of the monetary policy is conducted by the European Central Bank （ECB） in the euro area. After a close examination of the relationship between the monetary base and the supply of money, transmission through the credit channel and through the interestrate channel will be taken into consideration. The analysis shows that loans to nonfinancial corporations were not affected by the huge amount of liquidity created by the ECB, while a very slow growth is shown by loans to private households during the whole period.展开更多
文摘Since the start of reform and opening in the late 1970s, China's monetary operation has undergone dramatic changes. The J-curve of Chinese monetary aggregate (total quantity growth) over the period between 1978 and 2005 illustrates the changes in total quantity growth, while the changes in monetary structure are shown by an X-curve, and are attributed to the increased ratio of money in circulation to savings (money serving as a store of value) from 6:4 to 4:6. Therefore, the key factor in maintaining supply-and -demand equilibrium in monetary supply has shifted from the supply side to the demand side. The monetary aggregate has influenced the decrease in commodity prices. However, composite prices including assets, reflect the equilibrium of monetary supply and demand. In the face of the changes in Chinese monetary operation, attention should be given to inflation pressure and highly concentrated financial risks in the banking system, and the regulation of monetary demand should be emphasized. The regulation of monetary aggregate and monetary structure are both of vital importance.
文摘The great expansionary policies undertaken by the main central banks of the world since the outbreak of the world financial and economic crisis in 2008 did not produce a satisfying recovery of the real economy especially in Europe. In order to identify the causes of this failure, it became necessary to deepen the analysis of the transmission mechanism of monetary policy, and to investigate if there are some obstacles hampering the functioning of this mechanism. The scope of the present papers to analyze some short comings of the transmission mechanism of the monetary policy is conducted by the European Central Bank （ECB） in the euro area. After a close examination of the relationship between the monetary base and the supply of money, transmission through the credit channel and through the interestrate channel will be taken into consideration. The analysis shows that loans to nonfinancial corporations were not affected by the huge amount of liquidity created by the ECB, while a very slow growth is shown by loans to private households during the whole period.
