POOR EFFICIENCY OF TIGHT MONETARY POLICY TO CURB RECENT INFLATION

Recently,China's Consumer Price Index rises sharply,which represents the emerging inflation pressure.Chinese monetary authority has adopted a series of tight monetary policies to curb the inflation.However,one of the most important features of the present inflation is the structural adjustment of prices.The deep-level reason is the necessity of rectifying the distorted price system of factors of production and adjusting the economy development mode.Furthermore,there is deviation between the money supply growth rate and the inflation rate.Hence,the further tight monetary policies are inefficient on curbing the recent inflation.The comprehensive countermeasures should be carried out to control Chinese economy.