The Study Of The Interest Rate Transmission Mechanism Efficiency In Monetary Policy In China

The transmission mechanism is the core of the monetary policy and affects theeconomy directly. And the interest rate transmission mechanism is the most importantpart of the monetary policy transmission mechanism and also the most complicatedsubject in the real manipulation. With the development of the financial market, theinterest rate will play an important role in promoting economy growth in the future.So, it is of great importance to study the efficiency of interest rate transmissionmechanism.There are totally four parts in the thesis. Firstly, the brief introduction of the theory ofinterest rate transmission mechanism, including schools of Keynes, the model ofIS-LM curve and Tobin's Q theory. Secondly, the analysis of interest rate transmissionmechanism status in China with great deal of data material. After that , based on theessential analysis of the effect of interest rate transmission mechanism in China, thearticle discusses the hindering factors that restrict the role of interest ratemechanism.And fourthly, the outlet to perfect the interest rate transmissionmechanism in China.