Research on the Relation Between Government Treasury Cash Management and Monetary Policy

Ke Gao; Kehan Li; Tao Wang

doi:doi:10.11648/j.ijber.20190805.18

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Research on the Relation Between Government Treasury Cash Management and Monetary Policy

Ke Gao, Kehan Li, Tao Wang

Published in International Journal of Business and Economics Research (Volume 8, Issue 5)

Received: 4 April 2019 Accepted: Published: 27 August 2019

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Abstract

After more than ten years of endeavors and efforts, the reform of the financial treasury management system has made significant progress, and functions such as budget execution management and monitoring, financial financing and financial management, financial operation information analysis and reflection, macroeconomic regulation and control, and policy implementation have been basically established. With the steady implementation of the central treasury cash management, local treasury cash management has gradually been pushed forward. International experience shows that a sound treasury cash management system must not only achieve centralized control over treasury funds, but also be able to work closely with monetary policy to effectively invest and finance treasury cash. In this paper, the empirical analysis is carried out by using the econometric model. The results show that the positive impact of the treasury cash management operation has a negative impact on the money supply M1and M2, and the reaction trajectory presents a positive U-shape, which is analyzed from the specific response. The treasury cash management operation has less impact on M1, while the impact on M2 has a volatility characteristic.

Published in	International Journal of Business and Economics Research (Volume 8, Issue 5)
DOI	10.11648/j.ijber.20190805.18
Page(s)	314-319
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Treasury Cash Management, Monetary Policy, Commercial Bank Time Deposit

References

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[4]	Bordo MD, Duca JV, Koch C. Economic Policy Uncertainty and the Credit Channel: Aggregate and Bank Level U.S. Evidence over Several Decades [J]. Journal of Financial Stability, 2016: S1572308916300559.
[5]	Chen Jianqi, Zhang Yuan. The Impact of Treasury Cash Transfer Commercial Banks on Money Supply Policy——Based on the Expansion Analysis of Commercial Bank's Asset and Liability Framework [J]. Financial Research, 2010 (7): 85-98.
[6]	Wang Wensu, Zhou Jiannan, Ning Fangjing. The Choice of Coordination Mode of Treasury Cash Management and Monetary Policy [J]. Local Finance Research, 2013 (9): 41-55.
[7]	Ye Xiaodong, Du Jinxi. The Impact of the Treasury Cash Deposited in the Central Bank on Monetary Policy [J]. Financial Economics Research, 2014, 29 (02): 36-43.
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[9]	Yang Yuxia, Lou Qingyi. Analysis of the Monetary Effect of the Changes in the Treasury Cash Balance [J]. Local Finance Research, 2014 (02): 23-26.
[10]	Zhang Xiaobin. The Impact of Treasury Stock Changes on Money Supply——Based on the Analysis Framework of Central Bank's Balance Sheet Structure [J]. Shanghai Finance, 2016 (6): 27-32.
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[13]	Fu Yingjun, Li Lili. Empirical Test of the Influence of Treasury Cash Management on Money Supply and Interest Rate [J]. Statistics and Decision, 2017 (6): 165-169.
[14]	DuanXinfeng. An Empirical Study of the Influence of Treasury Funds on Monetary Policy——A Quantitative Analysis Based on Co-integration and Vector Error Correction Model [J]. Contemporary Finance Research, 2019 (02): 19-35.
[15]	Wang Shuhua, GuoLiping. The Dynamic Impact Mechanism of Treasury Fund Fluctuation and China's Monetary Policy Effect——An Empirical Analysis of System Estimation and District System Conversion [J]. Journal of Contemporary Economics, 2019, 41 (2): 13-26.

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APA Style

Ke Gao, Kehan Li, Tao Wang. (2019). Research on the Relation Between Government Treasury Cash Management and Monetary Policy. International Journal of Business and Economics Research, 8(5), 314-319. https://doi.org/10.11648/j.ijber.20190805.18

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ACS Style

Ke Gao; Kehan Li; Tao Wang. Research on the Relation Between Government Treasury Cash Management and Monetary Policy. Int. J. Bus. Econ. Res. 2019, 8(5), 314-319. doi: 10.11648/j.ijber.20190805.18

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AMA Style

Ke Gao, Kehan Li, Tao Wang. Research on the Relation Between Government Treasury Cash Management and Monetary Policy. Int J Bus Econ Res. 2019;8(5):314-319. doi: 10.11648/j.ijber.20190805.18

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@article{10.11648/j.ijber.20190805.18,
  author = {Ke Gao and Kehan Li and Tao Wang},
  title = {Research on the Relation Between Government Treasury Cash Management and Monetary Policy},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {5},
  pages = {314-319},
  doi = {10.11648/j.ijber.20190805.18},
  url = {https://doi.org/10.11648/j.ijber.20190805.18},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190805.18},
  abstract = {After more than ten years of endeavors and efforts, the reform of the financial treasury management system has made significant progress, and functions such as budget execution management and monitoring, financial financing and financial management, financial operation information analysis and reflection, macroeconomic regulation and control, and policy implementation have been basically established. With the steady implementation of the central treasury cash management, local treasury cash management has gradually been pushed forward. International experience shows that a sound treasury cash management system must not only achieve centralized control over treasury funds, but also be able to work closely with monetary policy to effectively invest and finance treasury cash. In this paper, the empirical analysis is carried out by using the econometric model. The results show that the positive impact of the treasury cash management operation has a negative impact on the money supply M1and M2, and the reaction trajectory presents a positive U-shape, which is analyzed from the specific response. The treasury cash management operation has less impact on M1, while the impact on M2 has a volatility characteristic.},
 year = {2019}
}

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TY  - JOUR
T1  - Research on the Relation Between Government Treasury Cash Management and Monetary Policy
AU  - Ke Gao
AU  - Kehan Li
AU  - Tao Wang
Y1  - 2019/08/27
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190805.18
DO  - 10.11648/j.ijber.20190805.18
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 314
EP  - 319
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190805.18
AB  - After more than ten years of endeavors and efforts, the reform of the financial treasury management system has made significant progress, and functions such as budget execution management and monitoring, financial financing and financial management, financial operation information analysis and reflection, macroeconomic regulation and control, and policy implementation have been basically established. With the steady implementation of the central treasury cash management, local treasury cash management has gradually been pushed forward. International experience shows that a sound treasury cash management system must not only achieve centralized control over treasury funds, but also be able to work closely with monetary policy to effectively invest and finance treasury cash. In this paper, the empirical analysis is carried out by using the econometric model. The results show that the positive impact of the treasury cash management operation has a negative impact on the money supply M1and M2, and the reaction trajectory presents a positive U-shape, which is analyzed from the specific response. The treasury cash management operation has less impact on M1, while the impact on M2 has a volatility characteristic.
VL  - 8
IS  - 5
ER  -

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Author Information

Ke Gao

School of Social Sciences, Tsinghua University, Beijing, P. R. China; Bank of Weifang, Weifang, P. R. China
Kehan Li

The Center for Economic Research, Shandong University, Jinan, P. R. China
Tao Wang

Guanghua School of Management, Peking University, Beijing, P. R. China

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APA Style

Ke Gao, Kehan Li, Tao Wang. (2019). Research on the Relation Between Government Treasury Cash Management and Monetary Policy. International Journal of Business and Economics Research, 8(5), 314-319. https://doi.org/10.11648/j.ijber.20190805.18

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ACS Style

Ke Gao; Kehan Li; Tao Wang. Research on the Relation Between Government Treasury Cash Management and Monetary Policy. Int. J. Bus. Econ. Res. 2019, 8(5), 314-319. doi: 10.11648/j.ijber.20190805.18

Copy | Download

AMA Style

Ke Gao, Kehan Li, Tao Wang. Research on the Relation Between Government Treasury Cash Management and Monetary Policy. Int J Bus Econ Res. 2019;8(5):314-319. doi: 10.11648/j.ijber.20190805.18

Copy | Download

@article{10.11648/j.ijber.20190805.18,
  author = {Ke Gao and Kehan Li and Tao Wang},
  title = {Research on the Relation Between Government Treasury Cash Management and Monetary Policy},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {5},
  pages = {314-319},
  doi = {10.11648/j.ijber.20190805.18},
  url = {https://doi.org/10.11648/j.ijber.20190805.18},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190805.18},
  abstract = {After more than ten years of endeavors and efforts, the reform of the financial treasury management system has made significant progress, and functions such as budget execution management and monitoring, financial financing and financial management, financial operation information analysis and reflection, macroeconomic regulation and control, and policy implementation have been basically established. With the steady implementation of the central treasury cash management, local treasury cash management has gradually been pushed forward. International experience shows that a sound treasury cash management system must not only achieve centralized control over treasury funds, but also be able to work closely with monetary policy to effectively invest and finance treasury cash. In this paper, the empirical analysis is carried out by using the econometric model. The results show that the positive impact of the treasury cash management operation has a negative impact on the money supply M1and M2, and the reaction trajectory presents a positive U-shape, which is analyzed from the specific response. The treasury cash management operation has less impact on M1, while the impact on M2 has a volatility characteristic.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Research on the Relation Between Government Treasury Cash Management and Monetary Policy
AU  - Ke Gao
AU  - Kehan Li
AU  - Tao Wang
Y1  - 2019/08/27
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190805.18
DO  - 10.11648/j.ijber.20190805.18
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 314
EP  - 319
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190805.18
AB  - After more than ten years of endeavors and efforts, the reform of the financial treasury management system has made significant progress, and functions such as budget execution management and monitoring, financial financing and financial management, financial operation information analysis and reflection, macroeconomic regulation and control, and policy implementation have been basically established. With the steady implementation of the central treasury cash management, local treasury cash management has gradually been pushed forward. International experience shows that a sound treasury cash management system must not only achieve centralized control over treasury funds, but also be able to work closely with monetary policy to effectively invest and finance treasury cash. In this paper, the empirical analysis is carried out by using the econometric model. The results show that the positive impact of the treasury cash management operation has a negative impact on the money supply M1and M2, and the reaction trajectory presents a positive U-shape, which is analyzed from the specific response. The treasury cash management operation has less impact on M1, while the impact on M2 has a volatility characteristic.
VL  - 8
IS  - 5
ER  -

Copy | Download