Group 1 - The global economic landscape is undergoing rapid restructuring, with China facing multiple challenges including stabilizing growth, promoting transformation, and preventing risks [1] - The Politburo meeting on April 25 emphasized the need for more proactive macroeconomic policies, utilizing both fiscal and monetary measures to support technological innovation, expand consumption, and stabilize foreign trade [1] - The divergence in global monetary policies is increasing, with the European Central Bank (ECB) set to start a rate-cutting cycle in mid-2024, while the Federal Reserve and the Bank of England have shifted to a wait-and-see approach after several rounds of rate cuts [1] Group 2 - The concept of the "global financial cycle" provides a new framework for understanding the implementation of China's monetary policy [1] - Key variables identified in the global financial cycle include risk asset prices, total international capital flows, and private sector credit, which are highly correlated with global risk appetite indicators, commodity prices, international trade volume, and world economic growth [3] - The U.S. plays a dominant role in the global financial cycle, with the Federal Reserve's monetary policy changes rapidly spreading globally through various channels [4][7] Group 3 - The spillover effects of monetary policy from major central banks, particularly the Federal Reserve, significantly influence global financial conditions, capital flows, and monetary policy independence in other economies [7][8] - The Federal Reserve's tightening of monetary policy leads to a rapid tightening of global financial conditions, impacting private sector credit, asset prices, and increasing financing costs, especially for emerging markets [9][19] - The ECB's monetary policy adjustments primarily affect the Eurozone's internal financial markets, with limited direct impact on other major economies, but it significantly influences global trade dynamics [10][16] Group 4 - The People's Bank of China (PBOC) influences the global economy mainly through international trade and commodity markets, with its monetary policy having a more indirect effect compared to the Federal Reserve and ECB [11] - The global financial cycle's expansion limits the operational space for monetary policy in open economies, as changes in U.S. monetary policy affect international capital flows and risk asset prices [21] - The coordination of monetary and macroprudential policies is essential for maintaining economic stability and enhancing financial resilience in the context of the global financial cycle [20][22]