Abstract: With the continued decline in funds outstanding for foreign exchange, China′s central bank frequently uses the lending facilities of monetary policy to inject monetary base, which leads to profound changes in the injection mechanism of monetary base. Embarking from the central bank′s balance sheets, based on the analysis of the phase characteristics of monetary base injection, this paper separates the active injection from the passive injection of monetary base, and uses the TVP-VAR model to examine the interconnection between monetary base injection and economic growth and price level since 1993. The results show that the random disturbance of monetary base injection has significant time-varying impacts on economic growth and price level; there are significant differences between the impacts of passive injection and active injection of monetary base on economic growth and price level under different phases of monetary base structure; from the view of impact strength and time delay, the impacts of passive injection on macroeconomy are stronger than the impacts of active injection in most of time. The above conclusions show that the macroeconomic effects of active and passive injection of monetary base are not the same, and the macroeconomic effects of passive injection are stronger than the active injection in most of time. On the basis of controlling the total amount of monetary base, the central bank should pay more attention to the structure of monetary base and further improve the mechanism of long-time monetary base.

Key words: monetary base, active injection, passive injection, economic growth, price level