Balance on Monetary Policy and Macroprudential Policy
Volume 9, Issue 2, June 2020, Pages: 27-39
Received: Nov. 19, 2019; Accepted: Dec. 5, 2019; Published: Jun. 17, 2020
Views 57      Downloads 60
Zhi Junli, Institute of Chinese Financial Studies, Southwestern University of Finance and Economics, Chengdu, China
Zeng Kanglin, Institute of Chinese Financial Studies, Southwestern University of Finance and Economics, Chengdu, China
Article Tools
Follow on us
Monetary policy is based on the theoretical rationale of the insufficient effective demand. The mainly logical difference between Keynes and Friedman are what domain interest rate directly and which factor will offset the effect of interest rate. The empirical application of monetary policy has several aspects deserving study: (1) the target, range, strength and effect of its monetary policy, (2) the theoretical development of Western monetary policy transmission, (3) monetary transmission channel in China, (4) the difference effect of monetary policy. The aggregate financing to real economy is China’s innovation to monetary policy. The background of macroprudential policy is financial crisis, its theoretical backup and application in real world including situation analysis, taking countermeasures, and tools application. By practical experience of China, the systematic financial risk lies on the unhealthy condition of most financial institute. The stock market crisis in 2015 is a reflection of systematic financial risk. Therefore, we should focus our attention on the special mechanism of financial risk and financial cycle in background of socialist political system with Chinese characteristics. We also should study liquidity condition by the central bank qualitatively and quantitatively.
Monetary Policy, Macroprudential Policy, Excess Liquidity
To cite this article
Zhi Junli, Zeng Kanglin, Balance on Monetary Policy and Macroprudential Policy, Economics. Vol. 9, No. 2, 2020, pp. 27-39. doi: 10.11648/
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Zeng Kanglin, “Zeng Kanglin's Anthology - Theory and Practice”, Chengdu: Southwestern University of Finance and Economics Publishing House, December 2014.
Lu Lei, “Reflection of financial institution reform”, Beijing: China Financial Publishing House, January 2018.
Li Dandan, “What central Bank and economists talk about?”, Financial Technology Research, February 21th, 2019.
Tobin J., “Review of Stabilizing an Unstable Economy by Hyman P. Minsky”, Journal of Economic Literature, Vol. 27, pp. 105-108, 1989.
Zhou Xiaochuan,“Keep the bottom line of systemic financial risks”, Excerpted from“The report to the 19th National Congress of the Communist Party of China”, From the People's Bank of China website. 2017.
Yue Yue, “The influence of macroprudential system on Chinese commercial Banks and the corresponding countermeasures”, New Finance, Vol, 26 (02), pp. 30-35, 2019.
Zhuo Shangjin, “Making better use of “double pillar policy framework”, Financial News, February 25th, 2017.
Charles P. Kindleberger, “The World in Depression, 1929–1939”, Song Chengxian and Hong Wenda Trans, Shanghai: Shanghai Translation Publishing House, July 1986.
Friedman M. and Schwartz A. J., “A Monetary History of the United States, 1867-1960”, Princeton University Press, 1963.
Bernanke B. S. and Blinder A. S., “The Federal Funds Rate and the Channels of Monetary Transmission”, American Economic Review, Vol. 82, pp. 901-921, 1992.
Reinhart C. M., Reinhart V. R. and Rogoff K. S., “Public Debt Overhangs: Advanced-Economy Episodes Since 1800”, Journal of Economic Perspectives, Vol. 26, pp. 69-86, 2012.
Zhou Xiaochuan, “More terrible than the "grey rhinoceros"! What is the "Minsky moment" in Zhou Xiaochuan's consciousness?” Asset management circle, October 21th, 2017.
Jordà Ò, Schularick M. and Taylor A. M., "Macrofinancial History and the New Business Cycle Facts", NBER Macroeconomics Annual, Vol. 31, pp. 213-263, 2017.
Fisher I., “The Debt-deflation Theory of Great Depressions”, Econometrica, Vol. 1, pp. 337-357, 1933.
Peng Wensheng, “The central bank’s report first mentions the “financial cycle”, which has far-reaching meaning”, China Finance 40 Forum, November 21th, 2017.
Dalio R., “An In-depth Look at Deleveragings”, Bridgewater Report, 2012.
Jin Penghui, “Macro-prudential management practice in Shandong”, China Finance, vol. 52 (11), pp. 31-33, 2017.
Zeng Kanglin, Xu Peiwen, Luo Jin,“Innovative Thinking on the Excess Growth of Money Supply in China”, Finance & Trade Economics, Vol, 35 (02), pp. 11-18, 2014.
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186