The Study On Transmission Mechanism Of Monetary Policy In China

This dissertation has studied three micro-agents of transmission mechanism of Chinese monetary policy;moreover,it has studied the effect on the effectiveness of monetary policy as far as their own specifc representative actions are concerned.The three micro-agents refer to household,enterprise and commercial bank.To form the systematic frame,the price of house would be regarded as carrier that conjures up household,enterprise and commercial bank.The steps we take when studying are the ones:First,the change of monetary policy has some effect on each micro-agent and the response of the micro-agent to the monetary policy.Second,after each responds to the monetary policy,the actions made by each have some effect on the macroeconomy with the standard like price stability and economic growth as two main targets of Chinese monetary policy.This dissertation is different from the similarly previous ones concerning the study of transmission mechanism with the point like "the instrument of monetary policy--intermediate target-final target".Instead,the point like "the instrument of monetary policy-the actions of each micro-agent-final target"is used in this dissertation.On the base of classic theory,with the micro perspective,this dissertation studied three micro-agents of transmission mechanism of Chinese monetary policy like household,enterprise and commercial bank with historical data,theoretical model and empirical test.Furthermore,this dissertation concludes:First,with the effect of customer's habit and city-urban disparity,household is lowly sensitive to the monetary policy and then consumption and saving don't have much effect on the price stability and economic growth,as a result,the monetary policy transmission channel through household is prevented and becomes weak.Second,with the effect of mechanism of Chinese money supply and economic situation,even if entrepreneurs are sensitive to the monetary policy,the investment doesn't make much contributions to real GDP,which affects the effectiveness of monetary policy.Third,with the effect of its own character like high ratio of excessive reserve,the transmission signal through commercial bank could be weakened,however,credit has little effect on price level,and strengthens economic growth.what's more,the long-run contribution of credit on economic growth is greater than the short-run one.so if we understand more about the micro-agents of monetary policy,it will help us to understand better about the relationship between monetary policy and real economy,and then we will have a better and more complete study on transimission mechanism of monetary policy,which provides us more reference for the effectiveness of Chinese monetary policy.