What is "moderate easing"? It is the first time in the history of macro-control in China to adjust the operation of monetary policy in a timely and appropriate manner according to the changes in the situation and find a balance between promoting economic growth and maintaining price stability. Regarding its connotation, the relevant person in charge of the central bank once described it as follows: "At present, to implement a moderately loose monetary policy is to adjust the operation of monetary policy in a timely and appropriate manner according to the changes in the situation, ensure the stable growth of money and credit and sufficient liquidity of the financial system, promote the steady and rapid development of the economy, support the expansion of domestic demand, maintain the stability of the currency and finance, and increase financial support for economic growth." "To understand this policy, we must understand the two key words of' loose' and' moderate'." Ding Zhijie, vice president of university of international business and economics Institute of Finance, said. What is "pine"? During the Asian financial crisis, the central government proposed to implement a prudent monetary policy, and its policy orientation was to increase the money supply. Judging from the wording, the policy orientation of "moderate easing" is more positive than "steady". What is the "golden mean"? If we blindly stimulate economic growth by issuing additional money, it may cause inflation to rise again and cause currency instability. The goal of monetary policy is to maintain monetary stability and promote economic growth. "Therefore, this' moderation' not only means that monetary policy will be relaxed to a certain extent, but that monetary policy will grasp the scale and find a balance between promoting economic growth and maintaining price stability." Ding Zhijie said. Why should it be "moderately loose"? -Internally, we will provide convenient, timely and low-cost funds to promote economic growth-externally, we will cooperate with other countries' monetary policies to maintain the stability of the global financial market. The primary task of economic work this year is to maintain steady and rapid economic development. Implementing a moderately loose monetary policy is the need to "ensure growth". The International Monetary Fund predicts that the economic growth of developed countries will be only -0.3% in 2009, which is the first collective negative growth since World War II. The bitter international financial crisis is intertwined with the prominent contradictions in domestic economic operation, which increases the difficulty of China's economic operation. Under such a severe situation, the central government decisively adjusted the monetary policy from "tight" to "moderately loose", aiming at giving full play to the important role of counter-cyclical adjustment of monetary policy and ensuring liquidity supply, and "providing funds conveniently, timely and at low cost to promote economic growth." Peng Xingyun, director of the Monetary Theory and Monetary Policy Office of the Institute of Finance of China Academy of Social Sciences, said. On the other hand, with the deepening of economic globalization, it is necessary to implement a moderately loose monetary policy for international "coordination". In response to the international financial crisis, central banks have cut interest rates. The Federal Reserve has reduced the target interest rate of the federal funds (equivalent to the overnight lending rate of banks) to the lowest point in history-0-0.25%. In this context, if China's monetary policy is not adjusted, it is likely to fall into a passive position. For example, the widening of domestic and foreign spreads will attract global hot money inflows. "On the contrary, China has taken the initiative to adjust its monetary policy and joined hands with other countries to maintain the stability of the global financial market, which fully reflects its responsible attitude." Peng Xingyun said. At present, the overnight lending rate of banks in China has dropped to about 0.9%; In the retail deposit market, China's one-year deposit interest rate is 2.25%, which is basically equivalent to the 12-month deposit certificate interest rate of large banks such as Citibank. Experts believe that there is still room for the combination of monetary policy tools in China. A moderately loose monetary policy should have the ability and means to cope with the development and changes of more complicated domestic and international situations. How to achieve "moderate easing"? -Promote the steady growth of money and credit and sufficient liquidity of the financial system, guide commercial banks to reasonably increase credit supply, and guide the healthy development of private finance-Optimize the credit structure and increase financial support for people's livelihood, agriculture, rural areas and farmers, small and medium-sized enterprises and post-disaster recovery and reconstruction-Keep the RMB exchange rate basically stable at a reasonable and balanced level, further improve the balance of payments situation, and continue to flexibly adjust monetary policy tools such as the benchmark interest rate and the deposit reserve ratio according to changes in the economic and financial situation and CPI. Guide commercial banks to reasonably increase credit supply, develop various forms of direct financing, guide the healthy development of private finance, and increase the supply of funds through multiple channels. The previously released Opinions of General Office of the State Council on Current Finance Promoting Economic Development revealed that the broad money supply will increase by about 17% in 2009. Focusing on the key areas of expanding domestic demand, we will increase financial support for people's livelihood projects, "agriculture, rural areas and farmers", small and medium-sized enterprises, independent innovation, coordinated regional development, expanding consumption and post-earthquake recovery and reconstruction. Insist on different treatment and keep the pressure. "The Central Economic Work Conference proposed to support projects that can expand final consumption demand and drive intermediate demand, and optimize the domestic demand structure; It is necessary to support the construction of advanced production capacity with long-term competitive advantages in the international division of labor and optimize the structure of external demand. These all reflect the idea of guiding economic restructuring, maintaining growth and restructuring through credit restructuring. " Peng Xingyun said. Guide and improve market expectations and maintain the stability of the RMB exchange rate. At present, the expectation of RMB appreciation, which has plagued China's economy for a long time, has eased, and there is even some depreciation pressure in the short term. From June 5438 to early February 2008, the exchange rate of RMB against the US dollar hit 5% for four consecutive trading days. "Lower limit" position. "I have two views on the exchange rate issue," Ding Zhijie said frankly. First, judging from the market performance of the RMB exchange rate that has risen and fallen since July 2008, the RMB exchange rate is close to the equilibrium exchange rate level and should remain relatively stable at present; Second, with the continuous improvement of the exchange rate formation mechanism, it is normal and possible for the RMB exchange rate to fluctuate in both directions regardless of its appreciation or depreciation in the future. "Counter-cyclical adjustment" and "ensuring liquidity supply" are two new words that appeared at the Central Economic Work Conference. The so-called countercyclical adjustment is "moving against the wind of the economy." When the economy grows too fast and the inflationary pressure increases, we should implement a tight monetary policy, raise interest rates and deposit reserve ratio, and tighten monetary credit; On the other hand, when the economy declines or there is a risk of recession, it will lower the interest rate and deposit reserve ratio, and increase the money supply and total credit. This is done to eliminate cyclical fluctuations in the economy. The so-called guarantee of liquidity supply means that when financial institutions or enterprises face short-term capital supply shortage under the impact of economic downturn, especially the financial crisis, the central bank provides financing convenience for financial institutions, promotes the reasonable and stable growth of money and credit, improves the financing environment, maintains investor confidence, and provides a relatively relaxed financial environment for economic growth.