During the depression, we should adopt a relatively loose monetary policy to stimulate economic growth.
Monetary policy tools mainly include
1 Buying and selling bonds and other securities in the open market.
2 discount rate, deposit reserve, etc.
3 directly control the money supply (this is used less)
4 interest rate policy
Loose monetary policy refers to the policy of expanding the money supply, such as selling securities in the open market, lowering interest rates, increasing loans, and lowering the discount rate and deposit reserve ratio.
Austerity is just the opposite.
Extended data:
Monetary policy tools are the means adopted by the central bank to achieve monetary policy objectives. Monetary policy tools are divided into general tools and selective tools. For a long time in the past, China's monetary policy was dominated by direct regulation, that is, credit scale, cash plan and other tools. After 1998, indirect monetary policy tools were mainly adopted to adjust the total money supply.
China's monetary policy tools mainly include open market operation, deposit reserve, refinancing and rediscounting, interest rate policy, exchange rate policy, window guidance, short-term liquidity adjustment tool (SLO), medium-term lending facility (MLF) and so on. 20 13 1 1.6 On the website of the central bank, the column of "SLF" was added, and the development of SLF was officially released, which marked the official use of this new monetary policy tool.
appurtenance
Other policy tools, in addition to the above conventional and selective monetary policy tools, the central bank sometimes uses some supplementary monetary policy tools to directly 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 creation business of commercial banks according to law, mainly including credit distribution, direct intervention, liquidity ratio, interest rate restrictions and special loans;
(2) Indirect credit control tools refer to the central bank's special position in the financial system to guide its credit activities through consultation and publicity with financial institutions, thus controlling credit. The main ways are window guidance and moral advice.
New tools
2013165438+16 October, the website of the Bank of China added the column of "Standing Loan Facility (SLF)", which marked the official use of this new monetary policy tool. The central bank created this tool in early 20 13. StandingLendingFacility (SLF) has different names in different countries. Such as the discount window of the Federal Reserve, the margin loan instrument of the European Central Bank, the operational preparation instrument of the Bank of England, the supplementary loan instrument of the Bank of Japan and the liquidity preparation instrument of the Bank of Canada.
The so-called standing loan facility is a more direct financing method for commercial banks or financial institutions to apply for credit lines from the central bank through asset mortgage according to their own liquidity needs. Because the standing loan facility provides a "one-to-one" mode between the central bank and commercial banks, this currency operation mode is more like customized financing and structured financing.
The main features of the standing loan facility are: first, it is initiated by financial institutions and can apply for the standing loan facility according to its own liquidity needs; Second, the standing loan facility is a one-to-one transaction between the central bank and financial institutions, which is highly targeted. Third, standing loan facilities have a wide range of counterparties, usually covering deposit-taking financial institutions.