The Financial Structure And The Impacts On Chinese Monetary Policy Transmission Mechanism

Finance has become the core of modern economy . Intensification of finance play a significant role in the transitional economy . Since the performance of the reform and open policy, China's financial industry has developed at a phenomenal rate with its structure apparently changed .With the increasingly diversified, financial products have been more created ; quantities and sizes of financial institutions fast enlarged ; and financial market , particularly stock market, has grown at a speedy rate .The change in financial structure has made the foundation of money regulation a profoundly change . The paper analyzes the effects of the interest rate channel mainly through the open market operation, and the effects of the credit channel mainly through the commercial banks . On the other hand, Capital markets in China have developed rapidly and became an auxiliary road of monetary policy conduction.Based on the theory of monetary policy transmission , this article makes a study on the relation of financial structure and the effects of the monetary policy . It contains five sections: preface , the theory of financial structure and monetary policy transmission , the characters of the financial structure in China , the financial structure and the impacts on Chinese monetary policy transmission mechanism , and the abstracts and conclusions of the research..