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Monetary policy is based on the theoretical rationale of the insufficient effective demand. The mainly logical difference between Keynes and Friedman are what domain interest rate directly and which factor will offset the effect of interest rate. The empirical application of monetary policy has several aspects deserving study: (1) the target, range, strength and effect of its monetary policy, (2) the theoretical development of Western monetary policy transmission, (3) monetary transmission channel in China, (4) the difference effect of monetary policy. The aggregate financing to real economy is China’s innovation to monetary policy. The background of macroprudential policy is financial crisis, its theoretical backup and application in real world including situation analysis, taking countermeasures, and tools application. By practical experience of China, the systematic financial risk lies on the unhealthy condition of most financial institute. The stock market crisis in 2015 is a reflection of systematic financial risk. Therefore, we should focus our attention on the special mechanism of financial risk and financial cycle in background of socialist political system with Chinese characteristics. We also should study liquidity condition by the central bank qualitatively and quantitatively.