The monetary policy cannot be effectively implemented in counties due to the following reasons: first, the incomplete financial market has blocked the monetary channel; second, the adoption of credit channel has been curbed by the single credit standard and deviant behaviors of county economic agents; next, informal finance has been the main provider for the counties, so that the central bank is hard to control the county credit scale. Therefore, it is imperative to integrate the informal finance into the central bank's regulatory system, making it legalized, opened and standardized so as to achieve the goals of monetary policy in the county economy.
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