Research on Monetary Policy During Clinton Period
|Keywords||U.S. monetary policy Federal Reserve Greenspan Clinton|
In the 1990s, an effective macro-control is a necessary condition in the Clinton administration for economic prosperity of the United States. Thereinto, a prudent monetary policy of the FED has played an important role. Under the domestic and international political and economic situation, Greenspan led the Fed to make some new adjustments in this period: (1) the stable monetary policy under the "neutral " state; (2) the main task of the Federal Reserve was to stable price; (3) enhanced the comprehensive of intermediate target for monetary policy; (4) enhanced the predictability and transparency of monetary policy; (5) focus on the internationalization features of monetary policy.In analyzing of monetary policy, most research concentrated in viewing angle of economic theory, which could be said“specializes in one subject”and this is understandable. However, the analysis of monetary policy would not just start from economic theory. Because objectively speaking,economic theory is only a kind of reasonable explanation for economic activity, which perfection needs practice as leading. More importantly, human is key decision maker in economic activity. In this article, analysis of the monetary policy during Clinton period, the author’s point of view as follows: First, its functions with the provisions of Federal Reserve Act determines that monetary policy must have the practicality and applicability. Monetary policy is not only realistic and effective, but also must be combined with the characteristics of U.S. economic market, including the prevailing economic environment factors; Secondly, the reason of establishment in the history and the relatively independence of Federal Reserve System determines that monetary policy has a clear political intention; Thirdly, the special status of the Federal Reserve chairman, which decide the monetary policy that has some ideological; Finally, we concluded the influences of monetary policy during the period.This article is structured as follows: The first chapter describes the background of United States monetary policy mechanism (including the reason of the establishment in the history), the structure,the functions and institutional characteristics; the second chapter describes the background of the monetary policy implementation, and analyzes the political, economic and non-economic factors of United States and abroad during Clinton period; the third chapter describes the contents and characteristics of monetary policy; the fourth chapter analyzes the monetary policy.