Research On The Capital Market And Monetary Policy | Posted on:2002-08-19 | Degree:Master | Type:Thesis | Country:China | Candidate:Y Zhou | Full Text:PDF | GTID:2156360032450432 | Subject:National Economics | Abstract/Summary: | PDF Full Text Request | The paper includes four parts: The first part introduces the current condition ofChina's capital market, starting from the function of capital market. The second part,then, brings forth that the price of asset has come to have an increasing influence on the macroeconomic policy, especially on the making of monetary policy and itsperformance effect so that the making of economic policy must not ignore its existence.It's believed in the paper that monetary policy influences the change of asset price andfinally the real yield, which is realized by its transmitting mechanism. The transmittingmechanism of non-monetary asset is that the monetary policy of central bank leads to the change of investment and consumption and then to the change of the yield byaffecting portfolio selection and total wealth of investor It also analyzes thetransmitting mechanism of monetary policy in stock market and mid-long term bondmarket.The third part analyzes the influence of improving the liquidity of asset, increasingthe kind of asset and changing of the price of asset on the supply of money, and alsoanalyzes the function of stock market on monetary policy. The paper has completed thepractical analyses in the view of different theoretical opinion, and the result proves thatthe relations between asset price and monetary supply have come to emerge and thatasset price will inevitably become the important transmitting mechanism of monetarypolicy Tightening or loosening of monetary policy according to the condition of capitalmarket and asset price will be an important aspect which the monetary authorities mustvalue importance to and take into account in the future. Then this part proposes somesuggestions on the policy for the central bank to choose in developing capital market.Finally the fourth part thinks that the development of our capital market makes themonetary passage of transmitting monetary policy has formed, which plays animproving role in the transmitting mechanism of monetary policy, but there are stillserious transmitting obstacles and distortions. So the paper offers some opinions of theauthor and the relative management scheme, and hopes they can clear away the blockswhich exist in the fulfillment of our monetary policy.
| Keywords/Search Tags: | monetary policy, capital market, portfolio, asset prices | PDF Full Text Request | Related items |
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