as long as a country's central bank starts printing money to increase liquidity and keeps interest rates at an ultra-low level, it is a loose policy! It's a bit unscientific to just say the concept of loose money!
A currency has loose times and tight times. Take RMB as an example, 4 trillion times is when the People's Bank of China injects water into the market crazily, and this time is loose. At present, we are constantly raising reserves and raising interest rates, which is tightening! What is loose money
As long as a country's central bank starts printing money to increase liquidity and keeps interest rates at an ultra-low level, it is a loose policy! It's a bit unscientific to just say the concept of loose money!
A currency has loose times and tight times. Take RMB as an example, 4 trillion times is when the People's Bank of China injects water into the market crazily, and this time is loose. At present, we are constantly raising reserves and raising interest rates, which is tightening! What does loose monetary policy mean? What is the impact on the exchange rate?
then I'll code it myself.
Loose monetary policy is relative to austerity. Since there is such a question, it should be the lack of some basic knowledge of economic means in the national economic function. Then I'll put it in a more popular way.
For example, there are three cows in the market, and each 1 yuan only changes hands once. The amount of money circulating in the market (so-called currency) is 3 yuan. At this time, the state invested 29,9 yuan in the market, totaling 3, yuan. If it only changed hands once, the price of each cow would be 1, yuan.
This is the loose monetary policy after exaggeration. Thus, it will first affect the price increase (of course, prices are influenced by many factors and can never be determined by a modest monetary policy), but this is actually equivalent to currency depreciation, that is, the purchasing power of 1, yuan now can only offset 1 yuan in the past
At the same time, if the currency of country A does not change, the amount of money needed for country A to buy a cow with currency A is unchanged. Let's call it 5 yuan. In the past, 5 yuan was equivalent to domestic 1 yuan, and now 5 yuan is equivalent to 1, yuan. This shows that the exchange rate at home and abroad has decreased.
P.S.
1. Monetary policy is one of the economic means among the four major functions of the country, and there are also fiscal policies
, and there are many branches further up, which are relatively basic economic knowledge. It is recommended to find more relevant materials to learn.
2. Although China has implemented loose monetary policy this year, on the one hand, prices have indeed risen, but the role played by loose monetary policy is not great. Take real estate as an example, you will find that there are many factors affecting prices, so it is not the decisive factor to have a broader perspective. On the other hand, from the above, you should know that the exchange rate tends to depreciate, but it is not big at present. Although years of easing are mixed with austerity and stability, the general trend of RMB exchange rate is upward.
Just after reading his answer, I thought that maybe the landlord was out of understanding Japanese policies, so you can get a general idea of Japan's easing policy with reference to the above description, so I won't speculate, but I can provide some details: 1. One of the ways to ease monetary policy is to release bonds such as national debt, which is beneficial to * * * to concentrate wealth. 2. Loose monetary policy is beneficial to economic development. 3. Currency devaluation will be beneficial to export (you can understand this from the "cow" example)
I hope it can help you. What are the consequences of monetary easing?
inflation.
The role of loose monetary policy in promoting the economy is obvious. It can reduce the cost of capital and increase the money supply at the same time, so that many projects that are short of money can be launched, and many projects that have no economic benefits can be launched because of the reduced cost of capital. At the same time, on the consumer side, many people who do not have the conditions to buy can buy, and buyers who used to be able to buy one can buy two. This * * * to the economy is very intense.
excessive loose monetary policy will lead to excessive demand growth in the economy, and once it exceeds the production capacity, it will lead to inflation, which is called a bubble in the economy; In addition, once the monetary policy is tightened, those who do not have the conditions will produce bad debt labels: the first classic of composition: Liu Chuanzhi's famous words: the next one: how to make sentences, how to use them and how to make sentences
What is monetary easing policy?
Generally speaking, easy monetary policy is to increase the money supply in the market, such as issuing money directly, buying bonds in the open market, lowering the reserve ratio and loan interest rate, etc. With more money, enterprises and individuals who need loans can get loans more easily, which can generally make the economy develop faster, and it is a measure to promote prosperity or resist recession. For example, a large amount of credit released by the central government is the performance of easy monetary policy.
Specific policies
1. Reduce the deposit reserve ratio, so that commercial banks can reduce the deposit reserve turned over and increase the loanable funds.
2. The loose monetary policy and low rediscount rate enable commercial banks to obtain more funds and increase loanable funds when discounting bills to the central bank.
3. The central bank purchases securities and puts money on the market.
4. Relax the credit conditions and scale. What does loose monetary policy mean?
Generally speaking, loose monetary policy is to increase the money supply in the market. Specific policy tools are: 1. Reduce the deposit reserve ratio, so that commercial banks can reduce the deposit reserve turned over and increase the loanable funds. 2. Reduce the rediscount rate, so that commercial banks can obtain funds when discounting bills to the central bank. Increase loanable funds. 3. The central bank buys securities in the market. Money is put on the market. 4. Relax the credit conditions and scale. Under the loose monetary policy, the money supply in the market increases, which reduces the cost of using funds for enterprises and increases profits. Increasing the money supply increases people's money income. Promote consumption. Loose monetary policy is a monetary policy used to promote economic development when the domestic economy is not prosperous enough. What does loose monetary policy mean?
Generally speaking, loose monetary policy is to increase the money supply in the market. The specific policy tools are:
1. Reduce the deposit reserve ratio, so that commercial banks can reduce the deposit reserve paid. Increase the loanable funds.
2. Reduce the rediscount rate. When commercial banks discount bills to the central bank, they can get more funds and increase the loanable funds.
3. The central bank buys securities in the market. Money is put on the market.
4. Relax the credit conditions and scale.
Under the loose monetary policy, the money supply in the market increases, which reduces the cost of using funds and increases profits. Make people's monetary income increase and promote consumption. Loose monetary policy is a monetary policy used to promote economic development when the domestic economy is not prosperous enough. Excuse me, what is monetary easing policy? Please explain it in a popular way. Thank you. The loose monetary policy is mainly reflected in the deposit reserve ratio and deposit and loan interest rates. Generally speaking, it is to relax monetary policy and reduce the deposit income of investors and the loan cost of lenders. What does loose monetary policy mean?
Loose monetary policy means that the central bank adopts such methods as reducing the discount rate and statutory deposit reserve, or redeeming bonds in the open market to release funds, so as to increase the growth rate of money supply, increase the loanable funds in the market, and meet the demand of enterprises for funds.
Ways to realize loose monetary policy:
First, flexibly use monetary policy tools to increase the money supply. First, moderately increase the newly issued money. Second, give full play to the role of open market operations in transmitting monetary policy and promote the transformation of macro-control methods. With the expansion of the issuance of treasury bonds, it provides favorable conditions for expanding public business, and can continuously improve the technology and operation level of open market business according to the liquidity of financial institutions. Third, strengthen the management of refinancing, flexibly use the central bank's refinancing, give policy support to the reasonable capital demand of financial institutions and the reasonable need of purchasing funds for agricultural and sideline products, appropriately expand the objects of refinancing, and explore the forms of mortgage-backed refinancing. Fourth, develop the rediscount business steadily, appropriately expand the objects of rediscount, guide commercial banks to increase bill assets and support enterprises to expand bill financing. Fifth, improve the deposit reserve system and strengthen the supervision and management of deposit accounts of financial institutions' deposit reserves.
Secondly, further promote the construction of money market, straighten out the transmission mechanism of monetary policy, combine the collection work of financing centers with the development of money market, actively promote the nationwide unified electronic trading network of interbank lending,
create conditions for small and medium-sized financial institutions to directly participate in online transactions, and establish a financing agency system for small and medium-sized financial institutions based on commercial banks to facilitate market financing for small and medium-sized financial institutions.
Thirdly, guide commercial banks to further optimize the loan structure and promote structural adjustment. * * * Economic growth First, increase credit for agriculture, increase farmers' income and improve farmers' consumption level. The second is to relax the personal consumption credit policy and expand the scale of personal consumption credit. Third, banks actively provide loans to SMEs to support their development. Fourth, continue to support infrastructure construction and foreign trade export to promote rapid economic growth. Fifth, vigorously support scientific and technological innovation and technological transformation, and promote the development of high and new technologies. Sixth, for state-owned enterprises that have changed their operating mechanisms and have relatively high asset-liability ratios, banks can temporarily cut interest rates or suspend interest rates, help state-owned enterprises out of difficulties, increase employment, and increase consumption and economic growth. Sixth, do a good job in converting creditor's rights into equity, reduce the bad debts of state-owned commercial banks and reduce the debt burden of enterprises. Seventh, continue to use export credit financing measures to speed up the structural adjustment of foreign trade enterprises and promote foreign trade.
finally, adjust the monetary policy appropriately to promote the development of the securities market. First, securities companies are allowed to apply to the central bank for refinancing with stocks as collateral, brokers can go to the open market for financing, and securities companies can issue bonds. The second is to allow state-owned enterprise funds to enter the securities market, which is no longer regarded as illegal funds. The third is to allow insurance funds to indirectly enter the market. The fourth is to modify the commercial loan rules at an appropriate time. Commercial banks are allowed to issue equity loans. Is monetary easing printing more money?
partially correct
Monetary easing refers to the behavior that the central bank adopts loose monetary costs to reduce the financing cost in society.
In the past, one of the main ways for the central bank to reduce the social financing cost was to print more money. However, with the development of the central bank, there are more and more monetary policy measures in its monetary policy toolbox, and the available methods are not limited to this one. For example, common methods include lowering the deposit reserve ratio and lowering the central bank's refinancing rate. Tags: classic composition Previous: Liu Chuanzhi's famous words it famous words Next: How to make sentences, how to use them and how to make sentences.