ThemainproblemofChina'scurrentmonetarysupplytargetis its poorcontrollability, which results from the setup of the targetper se and the externalenvironment for its implementation.
The Bundesbank, in line with its own practice over the past 25 years, favoured a money-supply target, in which interest rates are changed to keep monetary growth within a specified range.
ChartObject Federal Funds Target RateAccording to Investopedia, quantitative easing is a government monetary policy occasionally used to increase the money supply by buying securities, such as U.S. Treasury Bonds, in the open market.