Impact of monetary policy on economic growth in China

This paper investigates the changing pattern and efficiency of sterilization in China as the liberalization of markets and integration with the world economy. Based on the evolution of money policy since the reform and opening up, we find the relationship between monetary policy and economic development. In order to make sure of the financial stability, Chinese government has adopted corresponding strategy of each transition stage and some achievements have been obtained. However, with the rapid development of economy, certain mismatching between monetary policy and economic growth is observed, which is reflected from inflation, unemployment rate and so on. Considering the economic principles as well as the basic conditions of our country, we propose several aspects to complement the existing policies and obtain final financial stability and economic growth in china.