By Wang Zhao　

Date: 2003/01/01

Abstract:　　

Although the interest rate of China is low, it can not create liquidity trap in short run. Facing the lasting of deflation in the world, the lower interest rate and it's lower effect, the monetary policy should be called to be active and steady from steady in order to change the public anticipation, meantime be flexible so it can play structural role. In addition, monetary policy should be more active, along with the higher capacity of the spontaneous economic growth and the withdrawal of the financial policy.