Abstract: As the central bank of the world’s biggest emerging, developing and transitional economy, considering the extreme complicated constraints and structure characteristics, due to the mainstream theory are focusing on developed economies, PBC actively explore monetary policies not only based on international theory progresses and experiences but also on the Chinese conditions status quo, successfully promote growth and price stability, and achieve satisfactory policy outcomes. The financial crisis has brought new challenges to the traditional monetary economics, which has greatly promoted the reflection and progress of the monetary policy theory. In this article, we made comprehensive analysis of the frontier progress and new models of the monetary economics theory, monetary policy framework，operations as well as strategies, and analyzed the valuable experience of China's monetary policy practice, which are the same in essence. Therefore, we can draw significant implications both in theory and policy to transform the monetary policy, perform the structural reform of the supply side under nowadays China’s new normal.

Full report ：WP No.20172 The Progress in Monetary Economics and Practices in China.pdf