A Study On The Connection Of Money Market And Capital Market In China

Finance market is the core of modern economic system. A mature and harmony of development finance market is one of the important standard of the economic develop level, and guarantee sustainable healthy development of economy.The paper is the theory analysis about the basic theory of the capital and money markets. It emphases differences in the function these markets, but the two markets connect each other.It is about the international comparison of the connections between the capital and money markets. In this part, the dissertation selects the United States of America and Japan as the model countries and gives a description about their financial markets developing processes, connections among the submarkets and supervision methods. Finally it concludes the useful experiences we could learn from the countries.Money market develops slowly but capital market develops fast. The department markets of money market and capital market doesn't develop correspondingly. The reason is that our government has paid too much attention to financial function but ignore the policy function, which segregates money market from capital market.In order to improve the efficiency in financial system, we should develop money market quickly and develop capital market regularly. And the most importance is that we should construct various channels between money market and capital market in order to develop money market and capital market correspondingly.