1. Commonly used monetary policy tools of the central bank include: reserve requirement system, rediscount policy, and open market operations. These three monetary policy tools are also called general monetary policy tools, which refer to the means used by the central bank to have a comprehensive or general impact on the expansion and contraction of money and credit in the entire financial system. They are the most important monetary policy tools. They mainly adjust the money supply and credit scale in aggregate terms.

2. Adjustment methods of monetary policy tools commonly used by central banks:

1. Adjustment methods of the deposit reserve system: the composition of the deposit reserve ratio and statutory reserves and the limits that should be maintained , which has a direct impact on the bank's asset-liability ratio and business direction.

If the deposit reserve ratio is increased, commercial banks can be encouraged to absorb more deposits to maintain the original scale of assets, or to shrink loans, reduce investments, and sell claims to adapt to the compressed scale of available funds.

The central bank adjusts the credit creation ability of commercial banks and controls the expansion and contraction of money supply by increasing or reducing the deposit reserve ratio to achieve the policy purpose of stabilizing currency. Therefore, the deposit reserve system has become the central bank's implementation An effective tool of monetary policy.

2. Adjustment method of rediscount policy: Central banks in many modern countries use rediscount as a major monetary policy tool to control credit. Rediscount means that commercial banks or other financial institutions will discount the The undue bills obtained are transferred to the central bank. For the central bank, rediscounting means buying bills held by commercial banks, flowing out real money, and expanding the money supply.

For commercial banks, rediscounting means selling discounted bills to solve the temporary shortage of funds. The entire rediscount process is actually the process of bill buying and selling and fund transfer between commercial banks and the central bank.

3. The adjustment method of open market business: the scale of open market business can be fully controlled by the central bank, and the central bank has considerable initiative; open market business is flexible, buying more and selling less, and more You can sell as little as you want, and you can make "fine adjustments" to the money supply or make larger adjustments, so you have greater flexibility.

Open market business operations are highly time-sensitive. When the central bank issues an intention to buy or sell, the transaction can be executed immediately, and the excess reserves of the financial institutions participating in the transaction change accordingly; open market operations can be carried out frequently , operate continuously, and can also operate in reverse when necessary, switching from buying securities to selling securities, so that this policy tool will not cause major fluctuations in the entire financial market.

Extended information:

Other monetary policy tools of the central bank:

1. Selection tools: refers to the central bank’s specific policies for certain special credit or certain Tools used in special economic fields target the asset utilization and liability operating activities of certain individual commercial banks or the asset utilization and liability operating activities of entire commercial banks. They focus on controlling the qualitative aspects of banking business activities and are routine. A necessary supplement to monetary policy tools, common selective monetary policy tools mainly include:

(1) Consumer credit control;

(2) Securities market credit control;

(3) Real estate credit control;

(4) Preferential interest rates;

(5) Special deposits.

2. Supplementary tools: other policy tools. In addition to the above conventional and selective monetary policy tools, the central bank sometimes also uses some supplementary monetary policy tools to directly control and indirectly control credit. Including:

(1) Direct credit control tools refer to various measures taken by the central bank to directly intervene in the credit-creating business of commercial banks in accordance with the law, mainly including credit allocation, direct intervention, liquidity ratio, Interest rate restrictions, special loans;

(2) Indirect credit control tools refer to the central bank relying on its special position in the financial system to guide its credit activities through consultations and publicity with financial institutions. , to control credit, the main methods include window guidance and moral suasion.

Baidu Encyclopedia - Monetary Policy Tools

Baidu Encyclopedia - Deposit Reserve System

Baidu Encyclopedia - Rediscount Policy

Baidu Encyclopedia - Open market business