Third, the monetary policy instruments including required reserve, central bank lending, central bank discount and open market operation have been created and improved. In order to meet the actual demands of economic and financial development, monetary policy tools such as open market short-term liquidity adjustment instruments have been launched in succession. Monetary policy macro adjustment has been strengthened.
At different stages of economic development, the PBC has always made timely and proper adjustments in monetary policies according to the changes in financial and economic landscape. Here are several examples. In the late 1980s, China experienced serious economic overheating and inflation.