Research on the Relation Between Government Treasury Cash Management and Monetary Policy
International Journal of Business and Economics Research
Volume 8, Issue 5, October 2019, Pages: 314-319
Received: Apr. 4, 2019; Published: Aug. 27, 2019
Views 387      Downloads 76
Ke Gao, School of Social Sciences, Tsinghua University, Beijing, P. R. China; Bank of Weifang, Weifang, P. R. China
Kehan Li, The Center for Economic Research, Shandong University, Jinan, P. R. China
Tao Wang, Guanghua School of Management, Peking University, Beijing, P. R. China
Article Tools
Follow on us
After more than ten years of endeavors and efforts, the reform of the financial treasury management system has made significant progress, and functions such as budget execution management and monitoring, financial financing and financial management, financial operation information analysis and reflection, macroeconomic regulation and control, and policy implementation have been basically established. With the steady implementation of the central treasury cash management, local treasury cash management has gradually been pushed forward. International experience shows that a sound treasury cash management system must not only achieve centralized control over treasury funds, but also be able to work closely with monetary policy to effectively invest and finance treasury cash. In this paper, the empirical analysis is carried out by using the econometric model. The results show that the positive impact of the treasury cash management operation has a negative impact on the money supply M1and M2, and the reaction trajectory presents a positive U-shape, which is analyzed from the specific response. The treasury cash management operation has less impact on M1, while the impact on M2 has a volatility characteristic.
Treasury Cash Management, Monetary Policy, Commercial Bank Time Deposit
To cite this article
Ke Gao, Kehan Li, Tao Wang, Research on the Relation Between Government Treasury Cash Management and Monetary Policy, International Journal of Business and Economics Research. Vol. 8, No. 5, 2019, pp. 314-319. doi: 10.11648/j.ijber.20190805.18
Warren B. Hrung. An Examination of Treasury Term [J]. FRBNY Economic Policy Review, 2007: 19-32.
Lynch, TD, Shamsub. H. & Onwujuba. C. A Strategy to Prevent Losses in Local Government Investment Pools [J]. Public Budgeting & Finance, 2002, 2 (1): 60-79.
Jones. G. & Bowrey. G. Local Government Investment: A Form of Gambling [J]. Australasian Journal of Regional Studies, 2010, 16 (1): 37-50.
Bordo MD, Duca JV, Koch C. Economic Policy Uncertainty and the Credit Channel: Aggregate and Bank Level U.S. Evidence over Several Decades [J]. Journal of Financial Stability, 2016: S1572308916300559.
Chen Jianqi, Zhang Yuan. The Impact of Treasury Cash Transfer Commercial Banks on Money Supply Policy——Based on the Expansion Analysis of Commercial Bank's Asset and Liability Framework [J]. Financial Research, 2010 (7): 85-98.
Wang Wensu, Zhou Jiannan, Ning Fangjing. The Choice of Coordination Mode of Treasury Cash Management and Monetary Policy [J]. Local Finance Research, 2013 (9): 41-55.
Ye Xiaodong, Du Jinxi. The Impact of the Treasury Cash Deposited in the Central Bank on Monetary Policy [J]. Financial Economics Research, 2014, 29 (02): 36-43.
Bai Yanfeng, Li Longyu, Jin Wei. Treasury Cash Flow Forecast Based on New Perspectives of Macroeconomic Factors [J]. Journal of Hunan Finance and Economics Institute, 2014 (6): 5-16.
Yang Yuxia, Lou Qingyi. Analysis of the Monetary Effect of the Changes in the Treasury Cash Balance [J]. Local Finance Research, 2014 (02): 23-26.
Zhang Xiaobin. The Impact of Treasury Stock Changes on Money Supply——Based on the Analysis Framework of Central Bank's Balance Sheet Structure [J]. Shanghai Finance, 2016 (6): 27-32.
Fang Yuquan, Liang Duo. Discussion on the Change of Treasury Stock Balance and the Effectiveness of Monetary Policy Implementation [J]. Northern Finance, 2017 (11): 80-81.
Li Yanjun. Treasury cash management: an alternative channel for current liquidity in China [J]. Public Finance Research, 2017 (3): 49-59.
Fu Yingjun, Li Lili. Empirical Test of the Influence of Treasury Cash Management on Money Supply and Interest Rate [J]. Statistics and Decision, 2017 (6): 165-169.
DuanXinfeng. An Empirical Study of the Influence of Treasury Funds on Monetary Policy——A Quantitative Analysis Based on Co-integration and Vector Error Correction Model [J]. Contemporary Finance Research, 2019 (02): 19-35.
Wang Shuhua, GuoLiping. The Dynamic Impact Mechanism of Treasury Fund Fluctuation and China's Monetary Policy Effect——An Empirical Analysis of System Estimation and District System Conversion [J]. Journal of Contemporary Economics, 2019, 41 (2): 13-26.
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186