After the reform of mechanism of exchange rate, our country's central bank's monetary policy regulatory framework has gradually transformed from a quantitative framework to a price-based framework. However, the academic circles have different views on the effectiveness and applicability of these two monetary policy frameworks. In order to verify the effectiveness of price-based monetary policy, this article used the data during the period of the COVID-19 to conduct empirical tests. We found that price-based monetary policies can effectively smooth out macroeconomic fluctuations and promote stable economic development. Moreover, we propose that in order to further accelerate economic recovery, the central bank should take measures such as lowering the benchmark interest rate.

Liming Li. Is Price-Based Monetary Policy Effective?—Empirical Evidences from the Data during COVID-19. Academic Journal of Business & Management (2022) Vol. 4, Issue 19: 82-92. https://doi.org/10.25236/AJBM.2022.041911.

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