Empirical Analysis on the Effectiveness of China Prudent Monetary Policy

This article tested the effectiveness of china prudent monetary policy by granger causality model. The results show that it is effective in certain degree that the People's Bank of China has achieved the economic goal by regulating and controlling the supply of money. Therefore, it is not wise to give up money supply as the intermediate target of monetary policy in recent years. At the same time, we should further consummate the tools and methods of regulating and controlling monetary policy.