Promote financial macro-control gradually from quantity-based to price-based main changes - the People's Bank Report

August a pair of - China's financial institution in 2013 second quarter financial policy report column in its related  article aforementioned that with money innovation and money market development, however additionally to additional enhance the price-based regulation and physical phenomenon mechanisms, promote money macro- regulation from quantity-based to price-based regulation and management step by step dynamic .



From the Chinese state of affairs, this use of quantitative regulation, price-based regulation likewise because the combination of macro-prudential policies regulation mode. this is often in line with China's national conditions selection, to some extent, additionally in line with the purpose of read since the crisis of the normal international policy framework to mirror new ideas generated.

Reported that the amount and volume ar usually closely connected, quantitative regulation and price-based regulation has the equivalent aspect, there ar a complementary role. ought to develop domestic and international economic and money state of affairs changes, selection and suppleness with the utilization of open market operations, reserve magnitude relation, interest rates and alternative tools, efforts to strengthen macro-prudential management, improve the effectiveness of economic macro-control.

The following is that the second quarter financial policy report, within the sort of correlation analysis column:

2008 international money crisis, countries in response to the crisis facing the twin task, on the one hand to form versatile use of political economy policy response to the crisis impact, maintain steady economic growth; hand additionally ought to learn lessons from the crisis, reflection and improve money macro-control framework . within the former case, the most important economies change use of the normal rate of interest adjustment tool, and once interest rates hit the lower limit enforced unconventional financial policy, which incorporates the financial institution record by adjusting the scale and structure of the quantitative easing policy, as well as some central banks larger stress on the utilization of forward steering, the announcement of policy measures, clearly inform the general public on the outlook for future policy.

The reason, because the u.  s., Columbia University prof archangel Woodford (Michael Woodford) aforementioned, once interest rates hit a lower nominal interest rates unchanged last a protracted time, people's economic state of affairs is predicted to own a major impact, this once the central bank's steering are a lot of vital. In observe, the Fed has created it clear to the financial policy and therefore the level of state and inflation-linked, and exit on policy conditions, etc. anticipation to guide expectations, Japan has planned a a lot of express inflation target level. to enhance money macro-control framework, within the theoretical study and sensible aspects of economic reform even have some progress. one in all the a lot of important purpose is that data isn't up to the financial stability and money stability.



In the Eighties, before the money crisis to a extended time, the thought of worldwide financial policy is that the supposed "single target (CPI) and one means that (adjusted short-run interest rates)," framework, that is that the most common is that the inflation targeting ( IT). This model helps to alleviate the dynamic inconsistency drawback, improve transparency and restrictive policies, which is able to facilitate stabilize market expectations. however there ar some issues, like if inflation indicators to live the deviation of the policy of systematic deviations could occur, as well as solely one means that of regulation short-run interest rates, creating it troublesome to retort to previous years, the prevalence of the CPI stable quality costs and money markets volatility of things. this needs the made and therefore the addition of recent restrictive measures and policy instruments. Mo former Bank of England Governor King (Mervyn King) that's still necessary to stay inflation targeting, however solely inflation targeting isn't enough, you furthermore mght ought to take macro-prudential measures to curb excessive growth of the bank.

Brazil's financial institution additionally raised the study report, inflation targeting is troublesome to totally face competition from free-floating rate of exchange, credit market imperfections and ignore alternative aspects of the challenges of economic stability, it's necessary to think about the introduction of a stable macro-prudential money means that to be improved.



In comparison, the sooner financial policy to stimulate growth and therefore the camera focuses on selection, worth and later turned to stare at one rate of interest regulation, action the regularity and stability of expectations. From the international money crisis since the evolution of macro perspective, on the one hand the utilization of ancient rate of interest instruments at a similar time, major central banks a lot of with quantitative tools and therefore the importance of commitment and therefore the role of expectations, on the opposite hand money reforms planned macro-prudential policy framework began to stress the financial stability and money stability, unity, advocates for policy instruments and restrictive means that to counterpoint and supplement. The planned macro-prudential management ideas, however additionally provides US the money macro-control goals, means, and even the mechanism of financial policy and money regulation have a replacement relationship between thinking and understanding.

In recent years, strengthen macro-prudential policy has become a worldwide money management system reform is one in all the core content, and still build progress. Policy tools in late 2010 G20 approved the essential framework of Bale Ⅲ, as well as the strengthening macro-prudential management, enhance the numerous cyclic  adjustment progress. If the rise higher than the minimum restrictive capital necessities supported macro-prudential capital necessities, found out a capital conservation buffer, counter-cyclical capital buffer, extra capital necessities for systemically vital. Learn from money establishments throughout the crisis on liquidity management incontestable  the vulnerability, however additionally has reinforced its liquidity and leverage magnitude relation necessities, the new live can leverage sheet exposures into them, so as to limit excessive increase leverage banking concern behavior .



In the observe of international money management reform, the u.  s. reinforced the Fed's oversight of systemically vital money establishments, licensed the Federal Reserve is accountable for massive, complicated money establishments regulate. British government licensed the Bank of England is accountable for macro-prudential and money oversight authority from the money Services Authority transferred to the financial institution. Europe established the eu general Risk Board (ESRB), coordination of the monetary unit space macro-prudential policy effectively enforced. Meanwhile, the eu Commission planned the institution of the eu banking union. could 2013 the eu Parliament adopted a preliminary single European banking superior mechanism (SSM) Act, in accordance with the Act, the ECB can direct oversight of enormous banks, and alternative banking regulators have the correct to talk. ECB will use the law bestowed all macro-prudential management measures, as well as counter-cyclical capital buffer, the system necessities and therefore the importance of capital quality necessities.



To some extent, the international money crisis, the money macro-control theory and observe, targeted on the normal "single target, single means" to enhance and refine the framework. For structural worth changes, imperfect credit markets, incomplete info and alternative factors, utterly pegged one indicator, completely passionate about quantitative regulation or price-type management deficiencies could exist. would like a lot of attention on the broader sense the indicator stability, higher integration of financial stability and money stability mix and consequently improve relevant policy instruments and structure structure.



From the Chinese state of affairs, this use of quantitative regulation, price-based regulation likewise because the combination of macro-prudential policies regulation mode. this is often in line with China's national conditions selection, to some extent, additionally in line with the purpose of read since the crisis of the normal international policy framework to mirror new ideas generated. range and amount ar usually closely connected, quantitative regulation and price-based regulation has the equivalent aspect, there ar a complementary role. ought to develop domestic and international economic and money state of affairs changes, selection and suppleness with the utilization of open market operations, reserve magnitude relation, interest rates and alternative tools, efforts to strengthen macro-prudential management, improve the effectiveness of economic macro-control. With money innovation and money market developments, however additionally to additional enhance the price-based regulation and physical phenomenon mechanisms, promote money macro-control from quantity-based to price-based regulation and management step by step dynamic .