2010: Paying Equal Attention to Aggregate Control and Structural Control: Thoughts on China’s Monetary Policy
摘要
At the macroeconomic level, the balance between aggregate demand and aggregate supply has always been the most concerned issue for government regulationGovernment regulation. Aggregate demand is composed of investment, consumption, and net export. Therefore, government regulationGovernment regulation should be based on aggregate analysis, so is the monetary policyMonetary policy. Monetary regulation relies on the analysis of money flow: When money flow increases, contractionary measures should be adopted, and vice versa. The normal practices in monetary policyMonetary policy include open market operations, adjusting the required reserve ratio, and changing interest ratesInterest rates. Sometimes direct regulation of the scale of credit is also an important tool for changing the total amount of credit. In summary, the flow analysis is reasonable because the fluctuation of monetary flow directly affects aggregate demand and macro-economy. Thus, monetary policyMonetary policy regulation usually includes the above-mentioned aggregate control measures.