Research on the Financial Budget Independence of Chinese Central Bank and its Effect of Perform-duty

• 1、School of management,Wuhan University of Science and Technology,Wuhan 430065

Abstract：The independent financial budget is implemented by the central bank, which can provide financial guarantee to perform its duties effectively. In this paper, based on the theory and practice of central bank independence, a measure model of the financial budget independence of Chinese central bank has been constructed, which has also been measured, and with the relationship between independence index and the effect of performance of duties checkouted. The research shows that the budget and financial independence of Chinese central bank are relatively low; the central bank financial independence index influences the inflation rate by interacting with Engel\'s coefficient at different development stages, lower independence index hasResearch on the Financial Budget Independence of Chinese Central Bank and its Effect of Perform-duty a nonlinear positive correlation with the inflation rate during the food and clothing, while higher independence index has a nonlinear negative correlation during the well-off and affluence; Engel coefficient is nonlinear negative correlated with the inflation rate. Improving the independence of central bank financial budget can effectively restrain the rate of inflation. Based on this, some measures are proposed to strengthen the budget and financial independence of Chinese central bank.

Keywords： Central Bank Financial Budget Independence Measure Model Effect of Perform-duty