Research on Monetary Policy during Deflationary Periods

Author: Written by Fan Qilong
Publisher:
Publish Date: 2001-06-01
Features: This book revolves around the central issue of monetary policy during the period of deflation, guided by Marxist economics, and comprehensively applies theories from the Keynesian school, the monetarist school, new Keynesianism, and new classical macroeconomics. It first analyzes the formation process and connotation of the deflationary trend in China's economic transition phase. Then, it examines the generation mechanism of China's deflation from both theoretical and empirical perspectives.
Next, it discusses the relationship between the money supply, the general price level, and economic growth during China's deflationary period, thereby selecting monetary policy objectives for China. Furthermore, through an analysis of the transmission mechanism of monetary policy during deflation, it demonstrates the effectiveness of monetary policy in such a period. Building on this, factors such as lag, price-wage adjustment mechanisms, and rational expectations are introduced to analyze the types of monetary policy during deflation, proposing a proactive deflationary monetary policy approach.