An Empirical Study On The Relationship Between Monetary Policy And Stock Price Volatility

With the quick development of stock market of China, the total quantities of the fluent stock increase quickly. So the influence of the fluctuation of stock price to money market is more and more important. The debate about whether monetary policy maker should think of stock price is hot in the fields of economics. The paper firstly retrace the formal research results, and analyze the relations between monetary policy and stock price with theory \experience and test analysis ways, and conclude that there are strong relations between monetary policy and stock price of China. Taylor's monetary policy with a target for the stock market test includes that policy makers are often influenced by stock price fluctuation. The change of stock price often changes the structure of money supply. Central bank should consider stock price when making money policy under the conditions.