Theoretical and Empirical Analysis of Chinese Stock Market Affecting Monetary Policy Transmission Mechanism
|Keywords||monetary policy stock market Intermediate target|
As the development of capital market, especially the stock market in China, the impact of monetary policy transmission mechanism has been gradually revealed. On the one hand, run the macro level, the stock market has gradually become one of the important ways of the monetary policy transmission and has a profound impact on the transmission of monetary policy. It not only impact on the ultimate goal of monetary policy (economic growth, price stability, full employment and balance of payments), but also on intermediary objectives such as money supply, money velocity and so on; the other hand, from the microscopic operating level, the development of the stock market on the residents of the consumer and corporate financing has also had a certain influence, and ultimately affect the efficiency of monetary policy.In this paper, the stock market as the basic starting point, through a combination of theoretical and empirical analysis of the method, to study and demonstrate that the development of China’s stock market how to influence the ultimate goal of monetary policy and the intermediate goals. Empirical studies have shown that the consumption effect of the stock market and investment neither significant effects; and stock market development will divert part of the demand for money, diverted the money supply in the real economy, thereby affecting the effectiveness of monetary policy.