① Time lag of monetary policy. If the policy lag is limited and evenly distributed, the central bank can take measures in advance. If the distribution is uneven, the forecasting ability of the central bank will decline, and the counter-cyclical monetary policy will lose its effectiveness.
② Psychological expectation of microeconomic subjects. Under the assumption of rational expectation, the change of people's psychological expectation will weaken or even offset the effect of monetary policy.
③ Financial system reform. Changes in the financial system will increase the difficulty of defining money, change the speed of money circulation and change the interest rate elasticity of people's money demand. It may also make the changes in the international financial market quickly transmitted to China, increasing the difficulty of monetary policy regulation.
4 political factors. In addition, there are uncontrollable "external shocks" in the economic system, such as rising oil prices and technological revolution, which may affect the effectiveness of monetary policy.
Extended data:
According to the specific situation:
The effectiveness of monetary policy mainly depends on three conditions:
1. Can money systematically affect output?
2. Whether there is a stable relationship between money and output.
3. Whether the monetary authorities can control the currency at will.
The ultimate goal of monetary policy: stabilizing prices
The goal of price stability is the primary goal of the central bank's monetary policy, and the essence of price stability is the stability of the currency. Stabilizing prices is a relative concept, that is, controlling inflation so that the overall price level will not fluctuate greatly in a short time. To measure the stability of prices, there are three commonly used indicators according to the situation of each country:
One is the GNP (Gross National Product) average index, which takes the final products and services that constitute the gross national product as the object and reflects the price changes of the final products and services.
Second, the consumer price index, which takes consumers' daily living expenses as the object, can accurately reflect the changes in the consumer price level.
The third is the wholesale price index, which is aimed at wholesale transactions and can accurately reflect the price changes of bulk wholesale transactions. It should be noted that apart from inflation, there are still some factors within the normal range.
The determination of this boundary varies from country to country, mainly depending on the economic development of each country. In addition, traditional habits also have a great influence.
Baidu Encyclopedia-Effectiveness of Monetary Policy
Baidu Encyclopedia-Monetary Policy