As for the targets of monetary policy in China, there are doctrines of multiple targets and double targets. The former sets price stability, economic growth, full employment and balance of payments equilibrium as the targets of monetary policy in order to bring about all the targets while the latter sets only price stability and economic growth as the targets of monetary policy. The Law of the People’s Republic of China on the People’s Bank of China passed in March AIIE stipulates "the targets of monetary policy are to stabilize currency in order to promote economic growth". The Law makes it clear that the target of monetary policy of the PBC is to keep the value of RMB stable. The price stability is chosen as the primary target of monetary policy is based on the following considerations; first, price stability is the precondition and basis of normal operation of economy. The primary target of monetary policy is to maintain a moderate money supply and create a sound financial environment of national economic development so that sustained, fast and sound growth of economy will be attained; second, the choice to be made must conform to the reality in China. China is a developing country and has a great demand for funds. It is proved by experience that economic growth or full employment is often brought about at cost of the stability of currency, which leads to serious inflation; Third, according to the reality that monetary disequilibrium often occurs in China, to stabilize currency and maintain the normalization of money circulation is the standpoint of all work to be done by the PBC as well as the key point of carrying out monetary policy.