The Demonstration Study On Interaction Effect Of Monetary Policy And Stock Market In China

The monetary po1icy, as one of the significant means for macroeconomic readjustment in our country, has been found apparently restricted in its role in recent years, due to traditional channels fading and transmission mechanism impediment.With vigorous development of the stock market, which is linked more closely with the national economy, the implementation of monetary policy inevitably influences its trend, while the stock market produces positive impact on the effect of the monetary po1icy. To make an in-depth study on their related effect to confirm whether the stock market can become a new transmission channel for monetary po1icy, and to make monetary policy display a more effective role in macroeconomic readjustment has now become a new task confronted in the economic field of our country.This text does the brief summary to the monetary policy and stock policy at first, analyse about the related mechanism on the monetary policy and stock market, is it act as the theory explain to influence each other to of our country monetary policy and stock market. Then, use ADF test statistic, the cointtegration test, the vector autoregression model (VAR), the vector error correction models (VECM), the impulse responses the function, variance decomposition method of econometric technology etc. analyses the real example to the monetary policy of our country and interaction effect in the stock market, the real example is analysed to include the impact on speed of money flow of the stock market , influence to monetary demand of stock price change, the impact on the contribution degree analysis of the economic growth, stock market correctly of interest rate of stock market and impact on stock market of the money supply. Finally, according to the result of study of above-mentioned real examples, I think that there are certain related effects in the stock market of our country and monetary policy, but such related effect is faint and unstable, reason lie in that monetary authorities at the monetary policy of making is not to enough concern on stock market, it is very nonstandard that the stock market of our country is developed, and the function of conducting the monetary policy is obstructed. The last part, the new opinions and suggestions for change direction in monetary policy and stock market re-recognition of function change direction in monetary policy have put forward.