An Analysis of Effectiveness on Chinese Monetary Policy Tool

The effectiveness on monetary policy tool determines its result.The main monetary policy tools used in China contain open market operation,reserve ratio,basis rate of the central bank,credit policy,reloaning,rediscount,regulation on exchange market,etc.The concrete analysis shows that the main monetary policy tools during the past 10 years play an influence on monetary base in general,while the effect is weak on other factors,such as liquidity and large funds outstanding for foreign exchange.Furthermore,the time-lag effect in internal transmission mechanism of monetary policy can not play a timely role of monetary policy tool.