However, a monetary policy is unable to solve the issue alone.
This is because this solution is provided to control the M3. To control the MB, the China Central Bank should also step in this ball game. As China does not implement laissez-faire, this provides the China Central Bank has the power to control both interest rate and money supply
To amplify the magnitude of preceding solution, the China Central Bank can properly reduce the volume of MB supply. When the MB supply is cut down, this could further cool down the inflation come from the social consumption and pileup of foreign reserve