Abstract
The Chinese economy has entered a new normal, superimposing the impact of the trade war. The financial support of Chinese commercial banks for small and medium-sized enterprises is still insufficient, leading to the problem of financing difficulties for small and medium-sized enterprises and the poor transmission of monetary policy. In order to study how to promote Chinese commercial banks to follow the monetary policy orientation, increase financial support for small and medium-sized enterprises, and promote the transformation of economic development, this paper uses a comparative analysis method, through the comparative analysis of the economic environment of China and the EU. The author believes that the negative nominal interest rate policy of the euro zone countries can be of reference to China and can have a positive economic impact.
Highlights
The Chinese economy has entered a new normal, superimposing the impact of the trade war
At a time when the economy is in trouble, signs that the major economies have pursued or begun to study the applicability of negative interest rate policies indicate that under the current global low-interest economic environment, if the prospects for a world economic recovery remain unclear, worldwide Low interest rates will be a long-term trend, and there may be more countries that implement negative interest rate policies to lower interest rates below zero to stimulate the economy
The government still follows the act of lowering real interest rates to drive investment to drive the economy, which leads to a criticism of the actual negative interest rate policy far greater than the support voice
Summary
From the perspective of the world, since the 2008 financial crisis, interest rates in major economies around the world have gradually declined. At the end of January 2016, the Bank of Japan began to implement a negative interest rate policy. At the beginning of February 2016, Federal Reserve Chairman Yellen said that the United States may use a negative interest rate policy. The growth rate of investment in emerging industries is less than the rate of de-capacity, which has become a major cause of China’s economic development. In order to give full play to the role of China’s monetary policy in the economy, it is necessary for China to learn from international experience and innovate monetary policy operating tools to better play the effects of monetary policy
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