The Research On The Transmission Mechanism Of Monetary Policy Through Chinese Capital Market

With the point view of the world, the advance development in the capital market has made the micro-basis of the monetary policy's operation taken place great changes, and the capital market, as an important part of the transmission system for monetary policy, has become a key transmission channel which is parallel to the traditional channel, and all above has attracted attention from the theorists and the authorities. In China, the capital has just begun, but has developed in a high level. The development of capital market has given rise to the profound innovation of the Chinese financial structure, and correspondingly, the financial environment for the monetary policy's operation has also changed a lot; what is more important, the structural changes brought by capital market has exerted a great influence upon the supply and demand of currency, the tools and the transmission mechanism of monetary policy, so as to bring forward great challenge against the present monetary policy structure, and the changes has become an imperative factor when PBOC makes out and carries out monetary policy.So, how about the transmission system carries out its role, and how to make the channel clear have been put into the mind of the researchers. Aiming at making positive progress in the theoretical and empirical study, this thesis depicts why the monetary policy should focus on the changes of capital market and what the influence upon the transmission system by the development of capital market.To solve the first question, the thesis starts with the discussion about how the development of capital market exerts influence upon the whole economic and monetary policy, and how the influence makes changes itself along side with the development of capital market. We can clearly observe that the development of capital market makes a good role in the whole macro-economy and monetary policy; Secondly, this thesis discusses the relationship between the monetary policy and capital market, including whether to focus the relationship or not. And the above is the main logic idea.Along with the main logic idea, the thesis analytic structure and main research is as follows:The thesis is divided into six chapters and from the transmission system theoryof monetary policy through capital market, the influence analysis upon the transmission system by the development of capital market, the deep analysis for the transmission system barrier, and the suggestion to clearing the transmission system. And the thesis attempts to construct a whole analytic structure, and builds up a complete theoretical model on the transmission system for monetary policy.The first part, preface, briefly introduces the background and the structure arrangement.The second part, introduces that transmission system theory of monetary policy through capital market. The transmission system of monetary policy means the transmission channel and theory that the central bank, with some certain monetary policy tools, plays an influence on a series of economic variables in the economic system, and ultimately, carries out the predetermined goal of monetary policy. In the process of transmission, the start point is the monetary policy tool and the final point is the goal of monetary policy, and the transmission process is carried out on the operation of financial market and commodity market, dependent on the changes of the behavioral decision made by the micro-economic body. Among the transmission theory of monetary policy, the q effect, wealth effect and fluidity effect are notable theory.The third part: discuss about the capital market develop and its influence on monetary transmission mechanism, the foundation of shenzhen\ shanghai stock exchange symbolize the new era of china capital market development, capital market has become the substantial part of china economy and change the finance framework radically. Capital market has experienced great change till today: the radical change in capital market structure; the investment change from blind speculation to rational investment, the market effectiveness improved, the function of capital market change from finance to resource allocation; as for operating mechanism, the reinforcement of market mechanism instead of administrative interruption. The influence on monetary policy transmission mechanism caused by capital market development includes: the new change as for the importance of monetary policy transmission way; the monetary policy transmission chain become more complicated.The fourth part: the positivism analysis about capital market transmission mechanism. Firstly reviewed positivism analysis about abroad monetary policy and capital market, from the positivism analysis on capital market transmission mechanism of US EU and Japan monetary policy, surely the capital market transmission mechanism in mature market economy country would exert moreinfluence. Then the two-stage positivism analysis is performed as for china capital market transmission mechanism. The conclusion is: the monetary policy would result in the reaction of capital market from the application of capital monetary policy tool to the freely capital market transmission; the fluctuation of china capital market doesn't influence the actual outputs from the capital market \ living expenditure and enterprise investment doesn't change obviously.The fifth part: discuss about the deep reason of capital market transmission mechanism obstacle. Although the capital market developed greatly in recent years, there are still some defects that restrict the influence of capital market transmission monetary policy. The low operation effectiveness of capital market impinge on the effect of capital market transmission mechanism, the low integration of capital market and monetary market restrict the effect of capital market transmission means, the unstable and fluctuation of capital market also influence the effect of transmission means.The sixth part: the proposals to cope with transmission mechanism of monetary policy through capital market include: the expansion of capital market scope, foundation of capital market transmission means as for money policy, the completion of monetary policy operation system, elevate the efficiency of capital market operation, integrate the capital market and monetary market.The article use kinds of research methods during study, such as theory combine with action, the positivism analysis and pattern analysis etc, and the article also attempt to grasp the capital market transmission mechanism of china monetary policy as well as the analysis of the development of capital market in china from the view of plan economy converting to market economy.