Research On The Transmission Mechanism And Validity Of Chinese Monetary Policy

Modern economy is highly global, credit, informational and financial market economy, finance is the center in modern economy. Nowadays, with the instant financial of our economy, finance has become the central nervous system and play more and more important role in economic development. Monetary policy is an important Macro-economic policy, and the transmission mechanism of the monetary policy is the main content of monetary policy , it count how monetary policy to affect essential commerce, it is the base of the validity of monetary policy. To a great extent, whether the central bank can successfully accomplish its monetary policy's goal depends on whether the transmission mechanism of the monetary policy is smooth enough. The people's Bank of China is now confronted with a series of critical problems due to the transmission mechanism that bars the PBC to realize its monetary policy's goal. Therefore, it is necessary to give a thoroughly research on the transmission mechanism of the monetary policy.Based on the basic theories of the transmission mechanism of the monetary policy, the thesis analyze the current problems in the transmission mechanism of our monetary policy and the new challenges that confront with us, and raise some suggestions to strenthen the validity of the transmission mechanism of our monetary policy.