3.The current price decrease has mainly resulted from the irrational economic structure rather than inadequate money supply. Under such circumstances, monetary policy should not only facilitate expansion of domestic demand, but also prevent excessive expansion of money supply.
4.Our success in macroeconomic regulation over the years was also attributable to the importance we attached to financial work and the continued prudent monetary policy, emphasizing necessary banking support to economic development without blind expansion of bank credit.
5.The expansion or contraction in the monetary base leads interest rates for the domestic currency to fall or rise respectively, creating the monetary conditions that automatically counteract the original capital movement, ensuring stability of the exchange rate.
