Theoretical Analysis of the Benchmark for Choosing Manipulative Instruments of Monetary Policies

The process of implementing monetary policy by the Central Bank is that of taking the advantage of the manipulative instruments to reach the goals of policy so the Central Bank should choose the manipulative instruments according to certain benchmark so as to reach its goals better. The benchmark of choosing instruments of monetary policy by the Central Bank include theoretical benchmark and empirical benchmark. The theoretical benchmark consist of external and internal benchmark. Internal benchmark are the most important benchmark for daily operation,which include initiative benchmark,fine-tuning benchmark,signal-functioning benchmark,timeliness benchmark,and operablity benchmark.