The Research On Monetary Policy Transmission Mechanism Of China: Factors Of Encumbrance And Countermeasures

Market economy Running appears its rules and periodicity. Economists did many researches on the economic and financial fields and produced a lot, some of the researches are very useful for directing macro-economy and micro-economy. The western economists have explored the main channels of the monetary policy transmission mechanism gradually. We can divide these points into three kinds: traditional interest channel, the other assets price channel and credit channel.The market economy of China is still in shunting period. The theories in each field, including the theory on Monetary Policy Transmission Mechanism, are not very maturate and need to be consummated gradually. Because of the shunting Chinese economy and monetary policy, Monetary Policy Transmission Mechanism of China has its characters of shunting, such as monetary policy lag, micro-economy principal parts action, changes of currency circling speed and other factors of political and economic environments. These encumbrance factors need to be consummated. It is the most important task for us to do more researched on this issue to find the sticking points of this issue deeply and offer useful proposals to help building suitable Monetary Policy Transmission Mechanism of China.The mail point of this paper on the encumbrance factors of Chinese monetary policy transmission mechanism is as follow:First, the financial market of China is not maturated. Secondly, there are some problems in monetary policy measures of central bank. Thirdly , commercial bank is not completely under the market rules. Fourthly, the reform of national cooperates is improved slowly.Aiming at these problems, this paper makes suggestions to complete our monetary transmission mechanism, details as follow:Firstly, quicken the paces of developing financial market to offer a better market environment to the monetary policy transmission. Secondly , consummating the action and mechanism of commercial bank, changing the status of high debt rate of national cooperates and rebuilding social credit system to consummate the microcosmic foundation of monetary policy transmission.Thirdly, establish the independency of the central bank and promote market-based interest rate reform to consummate the monetary policy system.