Research On The Monetary Policy Transmission Mechanism Of Stock Market In China

Through more than ten years development of stock market of China, it has grow up day by day and become an indispensable important part in national economy, which is called the economic "barometer". With the development of stock market and the flux of financial structure, stock market becomes a significant transmission media of monetary policy signal, now more and more scholars concern about the impact on monetary policy of stock market price fluctuation. Then is there any internal relation between the stock market and monetary policy? How does it influent transmission mechanism of the monetary policy? Bringing with these questions, this thesis studies the relationship between the stock market and monetary policy transmission mechanism in China, then puts forward several countermeasures and suggests according to the mutual development of China's stock market and monetary policy.Chapter 1 of this thesis begins with the internal relation of the stock market and monetary policy, analyses the factors which influent the efficiency of stock market transmits monetary policy, and the new challenges to the monetary policy, then proposes the weak points of Central Bank at present. Chapter 2 analyses the theory changes of monetary policy, from traditional monetary policy theories, such as Interest Rate Transmission Theory, Credit Transmission Theory and Exchange Rate Transmission Theory, to new monetary policy theories of stock market, such as Tobin's q Effect, Wealth Effect, Liqwidity Effect and Expectancy Effect, then concludes that Central Bank should innovate the monetary policy to improve the efficiency of stock market transmitting monetary policy. Chapter3,1 proceed from actual conditions of our country and try to have an empirical analysis on the impact of the stock market's development on our country's monetary policies and monetary transmission mechanism. Firstly through analyzing stock market impact on monetary policy transmission mechanism, I draw the conclusion that monetary transmission mechanism in china is losing efficiency progressively; Then I analyze the response to monetary policy of stock market of our country, and find that Tobin's q Effect, Wealth Effect, Ligwiolity , Balance Sheet Effect and Asymmetrical Information Effect are still very faint. At last I analyze how stock market influent monetary supply and demand. Chapter 4 is the last chapter, through the above- mentioned analysis of the thesis, I put forward several policy suggestion on improving transmission efficiency of monetary policy.