Reforms in China’s Monetary Policy Reforms in China’s Monetary
I . China Monetary Policy
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| I . China Monetary Policy
(a) Evolution and Development of China’s Monetary Policy Framework Monetary policy framework is the institutional foundation for a central bank to conduct financial and macroeconomic regulation. Its choice and evolution depend largely on the stage of economic development and can better play its role only by serving the needs of the real economy. The Chinese economy is characterized by economic transition, rapid industrialization, and urbaniza- tion. As China shifted from a planned economy to a socialist market econ- omy, a modern financial regulatory system based mainly on indirect control has been gradually established. Against this backdrop, the monetary policy framework of China is also undergoing evolution and improvement. In 1984, The People’s Bank of China (PBC) started to function solely as a cen- tral bank. In 1995, Law of the People’s Republic of China on the People’s Bank of 76 ● Reforms in China’s Monetary Policy China explicitly established the legitimacy and authority of the PBC to for- mulate and implement monetary policy. In 1996, the PBC formally adopted money supply as the intermediate target of monetary policy. In 2003, Law of the People’s Republic of China on the People’s Bank of China was revised to further clarify the monetary policy toolkit and the institutional structure of the monetary policy committee. Over the years, China’s monetary policy framework experienced two- stage adjustments. During 1984–1997, the framework was featured by the management of credit scale. In 1998, credit quotas were abolished, and an indirect management framework of money and credit aggregates was estab- lished. These adjustments were the response to the required expansion of decision-making power of enterprises and the reinforced role of market in resource allocation, and they were in line with the inherent logic of China’s gradual reform. tải về 1.53 Mb. Chia sẻ với bạn bè của bạn:
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