One is measurability. The central bank can accurately take these variables as the intermediate goal of monetary policy.

The second is controllability, and the central bank can control the selected intermediary target within a certain or expected range with greater confidence.

The third is relevance. As an intermediate goal of monetary policy, variables are closely related to the ultimate goal of monetary policy.

Extended data:

The ultimate goal of money is also summarized as the following four aspects:

1. Stabilizing prices means curbing inflation and keeping the overall price level from big or violent fluctuations in the short term.

2. Full employment Full employment means that people who are able and willing to work can find suitable jobs under more reasonable conditions.

3. Economic growth Economic growth refers to the continuous improvement of the ability to meet the growing material and spiritual needs of society, that is, the increase in the total amount of goods and services produced in a certain period of time.

4. Balance of payments Balance of payments means that all monetary income and monetary expenditure of a country to other countries offset each other, with a slight surplus or deficit. In this paper, we choose the first of the ultimate goals-price stability, economic growth and full employment-as parameters to continue the next test and analysis.

Monetary policy tools:

First, control currency issuance.

Second, control and regulate government loans.

Third, we should promote open market business.

Fourth, change the deposit reserve ratio.

Fifth, adjust the rediscount rate.

Sixth, selective credit control.

Seventh, direct credit control.

Reference link: Baidu Encyclopedia: Monetary Policy

Baidu Encyclopedia: the Intermediate Goal of Monetary Policy