Monetary Policy and Inflation as Reforms of the

Monetary System by National Government

105 6


Monetary Policy and Inflation as Reforms of the

Monetary System by National Government

A Thesis
Submitted to
Department of Business Administration
National Kaohsiung University of Applied Sciences
In Partial Fulfillment of Requirements
For the Degree of Master of Business Administration

June 2016
Kaohsiung, Taiwan, Republic of China

105 6


20089
QE

3040

i
 Monetary Policy and Inflation:
as Reforms of the Monetary System by National Government

Student: Sha,Chang-Yen Adviser: Dr. Cheng-Feng Lee

Department of Business Administration

National Kaohsiung University of Applied Sciences

Abstract

A procedure is in September 2008, a wave of financial tsunami invaded all

over the world, and global major economies had commenced bailout actions
for their economics. In addition, the QE policy promulgated by The Board of
Governors of the Federal Reserve System, U.S., opened the outline of the
Quantitative Easing Monetary Policy, as well as the monetary policies
promulgated by those central banks in Europe and Japan. Hot Money swept
across global emerging markets; however, within the QE policy, only slight
asset bubble phenomenon occurred but serious inflation. This study applied
the historic concept of New Institutional Economics as the method, and used
the aspects of governmental organization, economic organization and
ideology to discuss the relationship between the monetary system change and
inflation. Moreover, it was based on the viewpoint of historic events to
investigate the relationship between Nationalist Governments monetary
policy and inflation in 1920s~1940s. Based on the research results, this study
proposed the influence of monetary policy on peoples livelihood and
economy as governments assessment reference to implement the monetary
policy. In addition, the research resulted showed that, firstly, in current
monetary systems, the probability of recurring the boiling inflation is very
low, since the monetary system had learned from the painful lesson in history,
it has been improved and corrected the systems defect. Secondly, if nations
could build a stable and flexible monetary system, an inflation could also
yield active and positive effect, and a moderate inflation might be beneficial
for the economic growth.
Keywords: New institutional economics, monetary policy, inflation
ii


iii


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91
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56


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