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Research On The Influence To The Monetary Policy Made By The Development Of Chinese Stock Market

Posted on:2005-03-31Degree:MasterType:Thesis
Country:ChinaCandidate:M ZhangFull Text:PDF
GTID:2156360152455763Subject:National Economics
Abstract/Summary:PDF Full Text Request
The stock market, which acts as the market mechanism of resource allocation , risk pricing, property right trading and conducting company, has deep effect and more influence on the modern economy and daily life. Most currency authorities in developed countries has indicated that there is a link between monetary policy and the stock market. Also they regarded these effects on stock market as the inside variable of establishing monetary policy and expected that the purpose of monetary policy can be fulfilled successfully.In the past several decades, the stock market in china had limited impact on particular economies, and the credit channel between commercial banks was a main mechanism of conducting Central Bank currency policy. Since 90' s, along with the establishment and gradual development of Chinese stock market, stock market has presented more and more close relationship with monetary policy. Furthermore, more new and further study are put forward in practice, such as how to reflect the relationship between stock market with monetary policy, how to integrate the response of stock market with monetary policy , and how to perform the function of monetary market at a maximum level.Based on the theory and research in developed countries and combining with particular characteristics of Chinese stock market, this paper describes specific relation between Chinese monetary policy and stock market. Research pointed that the impact on monetary policy by stock market has been presented by acting on supply of currency and influencing the conductive mechanism of monetary policy, therefore, the performance of monetary policy has been deeply affected. However, sometimes results were inconsistent while adopting the different measurements of the currency supply.Under the process of substantial analysis and verification of the change ofstock market and monetary policy in china in recent years, this paper points that it shows the difference between china and foreign countries, the interaction between monetary policy and stock market most has been expressed on influence to monetary policy by stock market, in contrast, monetary policy' s influence to stock market is comparative weak. A kind of possible explains is because of the inherent scarcity of the stock market in our country, the monetary policy affects comparative weak to the stock market, but the ability of absorbing stock market funds produces a certain influence to the monetary policy. Finally, this paper puts forward some policies suggestion from substantial research and evidence, and expects the further development of stock market and better performance of monetary policy, consequently to accelerate the development of our countries' economy.
Keywords/Search Tags:stock, market, monetary policy, multi - linear regression
PDF Full Text Request
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