Just after New Year's Day in 2019, the People's Bank of China announced a RRR cut, reducing the deposit reserve ratio of financial institutions by 1 percentage point.

　　The central bank has cut its RRR four times in 2018, because the stimulus bullets have been played out in the past.

　　Why is the current looseness of little effect?

　　Every time the currency is loose, the outside world will shout "release water" or "print money."

　　The stock market or real estate are financial assets, and the reason why their prices can rise is essentially the support provided by the real economy. The reason why easing was effective in the past is that in the process of China's financialization, the real economy has always been able to create a steady stream of profit returns, which is the internal driving force of the real economy rather than an effective monetary policy.

　　In the past, once looseness triggered the observation of asset price rises, Hayek's "currency is like honey" and Friedman's "inflation is always a monetary phenomenon" have many fans. In this huge group of believers, there are people of all colors, including economists who are disappointed with mainstream economics, enlightened officials who are dissatisfied with control within the system, and speculators who are betting on inflation outside the system.

　　In fact, easing policies are not always effective. Loose monetary policy, or so-called money printing, has its force boundary. This is actually self-explanatory-if money printing is effective, most countries will print money. The prerequisite for effective money printing lies in the vitality of the economy.

　　Monetary policy has capacity boundaries

　　Are the money-printers or the central bank almighty? Obviously not. The central bank can provide valuable help during the crisis of the financial crisis and provide the essential "lender of last resort" function; but in the recovery process after the crisis, how much effect it can play in the recovery of the economy, in fact, the whole world is exploring In the process. As former U.S. Treasury Secretary Timothy Geithner said, the central bank should play a more important role as a brake on economic prosperity. When the financial panic spreads and liquidity begins to disappear, the central bank should act as an accelerator."

　　Dongguan Jincheng Machinery Co., Ltd. has been engaged in the processing of metal tubes, bars, profiles and plates for more than 20 years. It integrates design, development, manufacturing, and sales services to form a precision metal circular saw and round tube rod end chamfering. Compound processing, pipe bending, saw blade grinding and other series of products are the operating system of the main operating system. Products are widely used in automobiles, motorcycles, bicycles, baby carriages, metallurgy, shipbuilding, medical care, lighting, solar energy, IT electronics, metal furniture, and construction. Doors and windows, hardware sanitary ware, health care equipment, wind power generation, air conditioning and refrigeration, and many other industries and fields.