The Research Of Insurance Fund Application And It's Influence On Monetary Policy Effect

The scale of the insurance market of our country and the influence of insurance market expanded constantly with the continual, fast and healthy development of our national economy. While the market of the insurance develops, the function of application of insurance fund increases day by day. The characteristics of application of the insurance fund includes its huge scale, pluralism using channel, continuously increasing income, investment securitization, etc. Generally, impact of fund application of the insurance on monetary policy is indirect, but this kind of influence increases with economic development constantly, and it has a deep and complicated impact on implementing effect of the monetary policy. While, Our country is in transition period when planned economy is going through transition to market economy, conduct of Central Bank monetary policy begin to carry out the transition from original bank credit channel to multi-channels conduct suchlike credit channel, interest rate channel and assets price channel. Application of insurance fund can produce synthetically influence in many aspects to conduct of these channels. Meanwhile, with the development of financial market, the impact of insurance fund application on monetary policy tools is increasing constantly. In addition, security, mobility of application of insurance fund is significant to the national finance safety. Analyzing these synthetically influences ofapplication of insurance fund will contribute to the finer realizing the goal of regulation and control of the monetary policy of Central Bank.This text introduces the current situations of the theory of application of the insurance fund and the present situation of our country at first. Then using the time serial method ,the text do a econometric analysis to the changing trend of scale of insurance fund application of our country, and it proves the conclusion that the total amount of application of insurance fund of our country will increase fast over the next several years. Then, it explains the indirect influence of application of insurance fund on the monetary policy theoretically, and this influence arises through application of insurance fund' impact to monetary policy conduct, monetary policy tool and function , goal of monetary policy mainly. Based on this, this text studies the structure ,principle and scale of insurance fund application, and its function on the monetary policy effect separately using combined quantitative and qualitative analysis. The finding of this text indicates that insurance fund application helps to realize the monetary policy conduction through multi-channels; insurance fund application is favorable to the macroeconomicstability in the long terms, thus makes a downward trend to the speed of money flow, the characteristic of insurance fund application makes the monetary policy lag have the tendency to reduce; insurance fund application strengthens residents' microeconomic expectancy; the impact on other factors of insurance fund application promotes operations of the macroeconomic more sound and stable, and improves the completion of the financial system of our country. As a whole, the insurance fund application helps to strengthen the monetary policy macro adjustments and controls result.Synthesize the analysis and discussion above, this text proposed some suggestions of improving the monetary policy effect by increasing insurance fund application, including widen the insurance fund application channel progressively; promoting the multi-channels conduct of monetary policy; strengthen the risk control in the insurance fund application to realize the security of the financial system; paying more attention to the coordination and cooperation of monetary policy and insurance policy ,finally. These measures will help giving play to the role of macro adjustments and controls of the monetary policy, and it will promote the benign development of the insurance market.