China's central bank raised the deposit reserve ratio and the special significance of the impact on the stock market

 China's central bank raised the deposit reserve ratio and the special significance of the impact on the stock market
People's Bank (central bank) on January 12 night suddenly announced that starting from January 18 to our financial institutions from the current reserve 14.5% to 15%. in CCTV News Network broadcast the message within two hours later, I received the Hangzhou five or six media in a telephone interview. face the public's interpretation, of course, can only try to pursue common. But The initiatives of the central bank, in my opinion is a very special meaning.
First, our government and the leaders have a positive attitude does not change the policy orientation of macroeconomic control in the context of the central bank announced the increase of deposits reserve ratio to some extent reflects the central bank of China has begun to have the ability to set monetary policy independently. In fact, the relationship between the government and the central bank has been the study of macroeconomics is an important content. Fried, founder of monetarism Man then even behind a country's central bank to be independent of the Government's policy objectives. Specifically, Friedman believes that the central bank can not be economic growth and full employment as its policy objectives. in non-gold standard monetary system, central control of the power of a national currency issued, it must prevent the currency impact on the economy itself. Therefore, the central bank's policy and only the final goal should be to control inflation and stabilize prices. Friedman called it ; single rule the negative economic impact.
Second, changes in the reserve ratio from the cycle point of view, in the past,Discount UGG boots, basically maintained at 5 years of a change in the cycle. that is, if it is upward cycle, then 5 years all within the upward adjustment; if it is down cycle, then 5 years all adjusted downward. but but only this time, we have seen,Bailey UGG boots, from September 2008 into the downward cycle later (which cut a total of 4 times, from 17.5% down to 14.5%), only after 1 year and 4 months to enter the regulated period. which reflects monetary policy of central banks have greater flexibility. If we say that the stability of the national policy of the Government to win the trust the substance of the people; but the formulation of macroeconomic policy but only to be flexible in order to realize its full value and significance of it. Because, macroeconomic policies (including monetary policy is one of the most important) must be based on a country's macroeconomic to develop the specific circumstances, and economic operation is very dynamic and unpredictable ups and downs. We see the Fed's control of history will know, the shortest control cycle is only two or three months, that is, within a year, Monetary policy may have to change the orientation of 3,4 times. Only the case of operation of the economy at any time, in due course to control the economy to the extent possible to fine-tune the small to avoid over-regulation of the negative impact to the economy, to minimize fluctuations in the economy.
Third, the change in monetary policy, but also the most successful over the years has done security work at a .12 out of a Chinese stock market in the County,cheap UGG boots, at least, that investors on the night of the bad news suddenly without any preparation. rather than the previous, more or less change in monetary policy will be reflected in the stock market advance.
I hope the Chinese central bank's policy to have greater independence and flexibility, which is China's market economy, an important symbol of maturity. As for the media and the public interest to change the monetary policy impact on the capital market, in fact, a problem not much suspense.
First of all, raising the deposit reserve ratio will shrink liquidity on the capital market is definitely a negative, especially in the investors do not have any unexpected situations; therefore, the stock gapped open tomorrow, is inevitable.
Second,UGG boots, the integrated other factors (such as blue-chip stock index futures on the broader market to stimulate economic recovery, export growth is expected, etc.), changes in the monetary policy impact on the capital market will be short-term, or even do not rule out the possibility of plate to rebound, at most two or three days time, the stock rally will continue, the recent upward trend.
Therefore, this test a low stock caused by a sudden bad, may give investors an excellent buying point.