What Are the Different Methods of Monetary Policy Transmission?

Monetary policy transmission mechanism (conduct mechanism of monetary policy) The central bank uses monetary policy tools to influence the intermediary indicators, and finally to achieve the established policy goals of the transmission path and mechanism. Monetary policy transmission mechanism refers to the process from the application of monetary policy to the realization of monetary policy objectives. Whether the monetary transmission mechanism is perfect and improved will directly affect the implementation effect of monetary policy and its contribution to the economy.

Monetary policy transmission mechanism

Our country

The theory of the transmission mechanism of monetary policy can be traced back to the quantity theory of money in the early 18th century, but until the 1930s "General Theory of Employment, Interest and Currency"

(1) As Western countries replace interest rates

1. Deal with the relationship between the reform and service of grass-roots branches of state-owned commercial banks.

Monetary policy transmission mechanism [conduction mechanism of monetary policy]

The central bank's dissertation details the interest rate transmission mechanism: the economic cycle significantly affects the effect

Song Qinghui, a famous economist, said in an interview with the reporter of "Daily Economic News" that the central bank's thesis largely represents the official attitude of the central bank. It is believed that in the future, reforming and unblocking the monetary policy transmission mechanism, such as weakening the restrictions on the number of loans, continuing to reduce the deposit reserve ratio and increasing interest rate cuts, will become the focus of improving the monetary policy transmission mechanism. ^[3]