A Study On The Interest Rate Transmission Mechanism Of Monetary Policy And Its Efficiency In China

The interest rate transmission mechanism is one of the monetary policy transmission mechanism,that is,the changes of the monetary policy result in the change of real interest rate,then further result in the changes of total demand and product at last.In the middle term of 1990s,our country began to liberate the interest rate step by step,the environment of macroeconomic changed increasingly,the monetary policy has become mainly economic policy and important means in our country.During the interest rate liberalization,the interest rate transmission will replace the credit transmission and most important transmission mechanism of monetary policy.Under this situation,the interest rate transmission of monetary policy has become the major issue which theoretical area and policy making department together pay carful attention to.Thus,it is a necessary subject of this paper to research the interest rate transmission mechanism during socialism market economy based on studying the interest rate transmission practice experience,to analyze the complexity of interest rate transmission ,to find the root of this probem,to put forward the founding and the perfecting of the management measures which can adapt current way of interest rate transmission mechanism.It has theoretical and practical significance to play the role in the adjustment of monetary policy,to perfect monetary policy transmission,to improve monetary policy efficiency,to promote rapid and healthy development of our country's economy.This paper applies monetary finance theory,combines theoretical and empirical analysis,based on analysis on interest rate transmission mechanism effect of interest rate marketization countries,and fully realize of the interest rate transmission mechanism in our country.Firstly,this paper analyzes the relation between interest rate marketization and interest rate transmission of monetary policy,and studies experience of interest rate marketization countries,then concludes premises and conditions which interest rate transmission can play a role.Secondly,this paper divides interest rate transmission in our country into two stages,analyzes interest rate transmission each part from a theoretical perspective, In the empirical part,this paper chooses a suitable quantitative analysis method and then analyzes quantificationally the interest rate transmission effect.Finally,this paper analyzes obstructive factors exsiting in interest rate systems,financial market,the behaviors of microcosmic units,and put forward the policy proposals of improving interest rate transmission.This paper studies the research results of interest rate transmission mechanism in our country and other countries,according to the current situation this paper establishes econometric modles,it has the following new insights:1.This paper combines the demonstration from the macroscopic angle with the explanation from the microscopic angles .Empirical part is based on macroscopic angle.It divide the interest rate transmission into two sections,that is:the transmission from the monetary policy to financial markets and the transmission from the financial markets to the product,then researches each part of the transmission and its operation efficiency.However,macroeconomic operation must be based on microcosimic units,through analyzing the behavior of banks,enterprises and individuals this paper further explains the obstructive factors existing in esch part of the transmission,at the same time,this paper also explores better theoretical basis for the combination of macro and micro studies.2. This paper cpmpares each quantitative methods and links Chinese monetary policy,then choose a suitable one.Using modern econometrics such as cointegraton,emc,granger causality,impulse response and variance decomposition analyzes systematically and comprehensively and dynamically each part of the interet rate transmission of monetary policy.