Study On The Relevence Between Stock Price Fluctuation And Monetary Policy

The connection between monetary policy and stock market is the most advanced subject as of the monetary policy research.. In China the stock market has been developed for more than a decade. With the development of stock market and the improvement of living standard, the percentage of residents holding stocks is increasingly go upward. Especially since 1997, the residents' asset stucture , which was mainly in the form of bank savings, has changed, the share of security asset in gross asset. In recent yeas, constantly decrease the interest rate, and levy the tax of deposit , these measures promoted the adjustment of structure of residents asset.Now, the stock market increasingly plays great pole in people' s life. and more and more obviously affect the economy and monetary policy, many experts have focused on the development of stock market and its affect to the life of economy. therefore, the connection between stock market and monetary policy is a good subject.This paper is consisted of five chapters:The frist chapter mainly discusses the purpose of this paper , and the current research in this field and the stucture of this paper.The second chapter talks about the influence of stock price theory on the development of monetary policy theory and demonstrates in two ways:the stock price and the monetary policy transmission mechanism , the stock market and the intermediary aim of monetary policy.The third chapter show us the mutal effect of stock price and monetary policy. It specifically discusses the effect of stock market to the ultimate aim ,intermediary aim and trasmission mechanism of monetary policy .The fourth chapter empirically analyse the relevance of monetary policy and stock priceThe last chapter gives some suggestions about stimulating monetary policy.