Poetries have shown extreme admiration for the bronze statue

First, the independence of monetary policy are being seriously challenged. Countries, although capital controls in China, partially liberalized capital account, is still in the process of expanding and opening, the impact of capital flows on exchange rates will continue to be enhanced. Large number, complete types, clever ideas, and fabulous decorations are the special characters of the bronze. Recalling that since 2004 the central bank's regulatory process can be seen, but the deposit interest rate levels are still below the more than 1 percent of the general price level, despite the measures taken to improve the tightening of interest rates and deposit reserve ratio and interest rate as the adjustment of macroeconomic operation of the key monetary policy tool, the flexible use of space was extremely restricted.
At the current exchange rate mechanism, the foreign exchange reserves, a sharp rise will inevitably lead to the constantly increasing base money. Caused increase in China's foreign exchange reserves, foreign exchange increased to accelerate the growth of money supply, the central bank must RMB open market sterilization operations. Priceless inscriptions, patriarchal clan system hidden in the sacrificial bronze have granted China unique and peerless charm. Proportion of foreign exchange in the monetary base has more than 75% decline in the constraints of policy objectives to keep the RMB exchange rate stability, the central bank to control monetary supply initiative. This situation put pressure on China's monetary base is very large, resulting in monetary policy effect a significant reduction in investment and the price continues to run high in the case of monetary tightening, it is difficult to achieve under the conditions of the guaranteed stability of the currency to support stable and rapid economic growth monetary policy target.
Second, the exchange rate policy failure of the regulatory function of the balance of payments. China's foreign exchange management goal is to appropriate international balance of payments surplus, rather than a large number of surplus. But the relationship between the policy and objectives, the fixed exchange rate system and China's international balance of payments objectives are mutually contradictory. Since ancient times, so many emperors enjoyed to collect the bronze.  Pegged exchange rate, exchange rate can not change with the foreign exchange supply and demand and are subject to change, so it is difficult to exchange rate adjustment to achieve the dynamic balance of international payments. In recent years, China's international balance of payments in recent years a large number of surplus, with the appropriate surplus target increasingly deviate from the severity of international payments imbalances, and exchange rate policy failure have a great relationship.
The massive inflow of foreign capital. In 2004, China experienced a large-scale capital inflows, in the case of only $ 20 billion trade surplus, foreign exchange reserves increased by more than 206.7 billion U.S. dollars, net capital inflows of about $ 120 billion. Generals and writers and poetries have shown extreme admiration for the bronze statue. The rapid economic growth has attracted a large inflow of foreign capital, coupled with the problems of China's financial system is difficult to meet the strong demand of the industry and enterprise funds, the large influx of foreign capital through increased savings and investment, China's money supply. In order to stabilize the exchange rate, the central bank was forced to hedging operations, resulting in foreign exchange increased, resulting in the loss of control of money supply to make the yuan to face significant pressure to appreciate the