5 thoughts on “The so -called loose monetary policy refers to those behaviors?”

  1. For quantitative and loose monetary policy, a quantitative loose monetary policy is generally speaking. When setting up monetary policy, the central bank will put the goal on a specific short -term interest rate level. Make the interest rate at the target position. At this time, the central bank hopes to regulate the cost of credit. The quantitative loose currency refers to the transfer of policy concerns from controlling the amount of funds from the control of the bank system to the number of funds. The goal of monetary policy is to ensure that monetary policy is maintained in a loose environment. For this policy, "quantity" means currency supply, and "looseness" means a lot. Of course, the quantitative loose monetary policy also has its own indicators. The use of "quantitative loose" monetary policy often means giving up traditional monetary policy means, because for the central bank, they cannot control both the price of funds and the amount of funds. Quantitative easing monetary policy is commonly known as "printing for banning". It refers to injecting excess funds into the market through a large number of money printing and purchasing government bonds or corporate bonds through a large number of banknote printing, which aims to reduce market interest rates and stimulate economic growth. This policy is usually adopted by the monetary authorities when the conventional monetary policy is invalidated by the economic stimulus, that is, the unconventional monetary policy implemented in the case of a liquidity trap. Quantitative easing monetary policy is a double -edged sword that implements a large amount of funds into the market into the market to help alleviate market capital tensions and help economic recovery. In the case of stagnation of economic growth, it may cause stagnation. In addition, the quantitative and loose monetary policy will also lead to a sharp depreciation of the country's currency. While stimulating the exports of the country, the economic form of deteriorating related trade bodies will cause trade frictions. For the United States, which is global economy, the impact of implementing this radical quantitative loose monetary policy on its country and global economy cannot be underestimated. (1) Quantitative and loose monetary policy buried the hidden dangers of global inflation and quantitative and loose monetary policy. In essence, it was essentially to enter the market to enter the market input to the market. In the case of lack of market confidence and atrophy, the liquidity of quantitative easing monetary policy to the market will not lead to inflation. However, once the economy improves and the investment confidence is recovered, the liquidity of excessive release may be transformed into inflation. Especially for the United States, because the US dollar is the world's reserve currency, and the pricing of major commodities in the world is based on the US dollar. The Fed's implementation of quantitative easing currency policy will lead to a significant depreciation of the US dollar Hidden dangers. In addition, the Fed's huge debt purchase plan has pushed the Demono bone card. In order to prevent the country's currency from appreciating the US dollar, impacting the export industry of the country, and further deteriorating the country's economy, it is imitated to the implementation of quantitative easing monetary policy, which further exacerbates the pressure of future inflation. This is why the quantitative loose currency policy has swept the world's major economies in the short term. If the quantitative loose monetary policy fails to take the US economy on the road of recovery, the economic downturn will lead to a stagnation situation. (2) One of the most direct performances of the economic situation of quantitative and loose currency policy The most direct manifestation of the economic situation of the economic situation quantitative and loose monetary policy is the significant depreciation of the country's currency, which is conducive to the export industry of the country. Essence For example, on the day of the Fed announced a huge capital injection plan, the world's major currencies appreciated a sharp appreciation of the US dollar, of which the euro appreciated by 3.5 %, the yen appreciated by 2.4 %, the British pound appreciated 1.6 %, and the Canadian dollar appreciated 1.7 %. This will weaken the export capabilities of the relevant trading body to the United States, especially for those export -oriented emerging economies in the financial crisis vortex, the quantitative and loose monetary policy of major economies such as Britain, American and Japan, etc. It may cause trade friction. (3) The value of the Foreign Exchange assets of the Corresponding Treasury reserves a large number of national bonds reduced the value of foreign exchange assets. Although the financial crisis originated in the United States, due to the strong economic strength of the United States and the unique international status of the US dollar, the US debt was greatly suffered due to the risk aversion function. welcome. U.S. Treasury bonds occupy an important position in foreign exchange assets including China. The Fed ’s purchase of US Treasury bonds will increase the price of US Treasury bonds and reduce its yield, thereby making the corresponding foreign exchange assets of the corresponding debt countries depreciating. On March 18, the yield of the US benchmark L0 -year -old government bonds fell from 3.01 % to 2.5 %, the largest daily decline since 1981. For the United States, the depreciation of the US dollar and the decrease in national debt yields will lead to huge excess capital outflows from the United States. For the US economy that is still in the vortex of the financial crisis, it is also a cruel reality that has to face. Quantitative easing monetary policy is a very aggressive policy. Although it is conducive to helping the developed economies in the financial crisis to alleviate the tension of credit and increase the driving force for economic expansion, from the perspective of the impact on the global economy, the world's major economy Sports, especially the US implementation of quantitative and loose monetary policy, is a kind of behavior of neighbors. It has laid the seeds of global inflation and may cause problems such as further deterioration of the economic economy of the outward -oriented economy.

  2. 1. Reduce the deposit reserve ratio, reduce the deposit reserve paid by commercial banks, and increase loan -available funds. 2. Reduce the discount rate, so that when the commercial bank is discounted to the central bank, you can get more funds and increase loan -available funds.
    3. Central banks purchase marketing securities and currency market in the market.
    4. Relax credit conditions and scale.

    "central bank repurchase" is divided into positive repurchase and reverse repurchase

    Plip repurchase and reverse repurchase are the central bank's throughput in the open market. One way to adjust monetary policy.

    The People's Bank of China has established a first -level dealer system for open market business since 1998. It chose a batch of commercial banks that can bear large bond transactions as the target of the public market business. At present, the public market business is currently open market business. A total of 40 commercial banks. These traders can use government bonds and policy financial bonds as trading tools to carry out open market business with the People's Bank of China. From the perspective of transaction varieties, the People's Bank of China's open market business bond transactions mainly include repurchase transactions, voucher transactions and issuance of central bank bills. Among them, the repurchase transaction is divided into two types: positive repurchase and reverse repurchase. The right repurchase sells a valuable securities for the People's Bank of China to the first -level dealers, and agrees that the trading behavior of buying and recovering securities in a specific date in the future is positive. The repurchase is the operation of the central bank's recovery of liquidity from the market, and the repurchase expiration expires the operation of the central bank to put liquidity to the market; the reverse repurchase purchases a price securities from the People's Bank of China to the first -level traders, and agrees that in the future specific in the future specific in the future The date of selling securities to the first -level dealers will be sold on the date. The reverse repurchase is the operation of the central bank's mobility to put liquidity on the market. The current voucher transaction is divided into two types: existing coupons and the existing ticket. Back to the basic currency. The central bank bill is the short -term bond issued by the People's Bank of China. The central bank can return the basic currency by issuing central bank bills, and the expiration of central bank bills is reflected in the basic currency.
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  3. Reduce the discount rate to open the market business, and reduce the interest rate reduction of deposit interest rates refers to reducing the interest of deposit.

  4. Monetary policy generally includes price and quantitative types. Price policy refers to the rise and fall of interest. The loose monetary policy is interest rate cuts. The quantitative policy refers to the increase and reduction of the reserve rate, the issuance of central tickets, and window guidance. The loose monetary policy is a reduction, issuing central tickets, and repurchase refers to the liquidity in the repurchase market, which is a number of regulation and control, and has little impact.

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