ТРАНСФОРМАЦІЯ МОНЕТАРНОЇ ПОЛІТИКИ ТА ЇЇ ВПЛИВ НА ЕКОНОМІЧНИЙ РОЗВИТОК КИТАЮ

Abstract

China’s monetary policy has undergone significant changes over the years. This article analyzes the evolution of monetary policy in China and its main instruments. It also analyzes the measures taken by the People’s Bank of China during the 2008 global financial crisis and the crisis caused by COVID 19. The lack of independence of the central bank, its instruments and the nature of accountability mechanisms are the main distinguishing features of China’s monetary policy. This reflects China’s one-party state system, in which the levers of macroeconomic management are coordinated by the State Council. Also, the goals of the monetary policy of the People’s Bank of China and their achievement have significant differences from countries with developed economies. In response to the crisis events of 2008 and 2020, the People’s Bank of China applied more traditional methods of monetary policy, and only forward guidance was used as an instrument of unconventional monetary policy. This suggests that the communication system of China is actively developing and corresponds to the trend of openness that is observed in developed countries, but with its own characteristics, mainly as a result of the unique institutional foundations of China. The monetary measures taken helped the government to cope with crisis situations and support economic development. Monetary instruments have a significant impact on the country’s macroeconomic indicators, which is also confirmed by regression analysis. In particular, the influence of monetary policy is reflected in the inflationary trends of the country, because with the help of monetary regulation of the PBC, it is possible to regulate inflation within the required limits, and at the same time to influence the volume of lending in the country, which is one of the necessary factors for the development of small and medium-sized businesses in country.