Many brothers ask, what is the purpose of monetary policy? How does the state machinery regulate the economy? What impact does the regulation process have on our investment? In fact, the main purpose of monetary policy is to: Economic growth, inflation, employment, and balance of international payments. 01, such as the Federal Reserve Mainly targeting inflation, but in fact, employment is also targeted, On the one hand, the natural unemployment rate affects the potential natural inflation rate, On the other hand, if the unemployment rate is too high, there will be deflationary pressure, Relaxing the currency at this time actually has a certain effect on deflation, driving employment, and stimulating economic growth. In times of crisis, the Federal Reserve must respond accordingly. Finally, the United States does not need to pay attention to the balance of international payments. They can simply activate the printing press to cope, and through the financial market, the capital account can achieve the return of US dollars. On the contrary, the Triffin Problem has always been the Sword of Damocles. 02, Eurozone The establishment of the eurozone is equivalent to countries abandoning the balance of international payments. The European Central Bank initially focused on inflation, inheriting the tradition of the German central bank, which learned from the vicious inflation during the Weimar Republic period. However, the global financial crisis in 2008, coupled with the subsequent European debt crisis, resulted in high employment rates, economic stagnation, and inflation, all of which are interconnected. 03, as for China The first is stable growth, the second is inflation, and the third is not employment, nor can it be considered as international balance of payments, it should be exchange rates. As for employment, it depends on stable growth and fiscal policy. 04. Under the gold standard system International balance of payments may be important, but now it may not be as important as exchange rates, and the purpose of exchange rates may not only be for international balance of payments, but also to maintain trade competitiveness. Furthermore, inflation only focuses on prices, and under the current macroprudential monetary policy framework (MPA), asset prices are also important. BIS and central banks of various countries, including the People's Bank of China, have all paid attention to the impact of financial cycles and asset prices on macroeconomic indicators. However, different economies have different asset prices to pay attention to. For example, China tends to guard against foam, especially real estate, while the Federal Reserve is more concerned with maintaining the stability of the stock market and avoiding a slump, with different goals and tasks.