Thepaper “The Policy Practice and Improvement Measures of Expectations Management”,coauthored by Professor Yumei GUO of the School of Finance and Professor YanbinCHEN with the School of Economy at Renmin University of China, was published inthe 5th issue of “Journal of Renmin University of China” in 2019.
Abstract : Expectation managementhas become one of the important monetary policy instruments of the centralbanks in developed countries, which remarkably affects the efficiency ofmonetary policy .However, there exist many problems in the expectation is stillweak. The reasons are as follows. First, excessive monetary policy objectiveshinder expectations formation. Second, monetary policy orientation is not clearand lack of clarity. Third, there are big lags in formation disclosure aboutmonetary policy. Fourth, the information which central bank communicates withmarket is insufficient. To strengthen expectation management, the People’s Bankof China should reduce the number of monetary policy objectives, communicatemore with the market, increase its research capabilities and enhanceindependence. .
Keywords : Expectation Management; Monetary Policy; Central Bank Communication；Transparency；Forward Guidance