The Research On The Credit Channel Of Transmission Mechanism Of Monetary Policy In Our Country

The transmission mechanism of monetary policy is the core point of macroeconomics. Whether the transmission mechanism is smooth directly relate to whether the implementation of monetary policy is effective. During 1998-2002, although the monetary authority significantly slowed the interest rate down, there is continued deflation in our country, the growth rate of GDP remained a continued lower level, the effect of monetary policy during this period is not satisfied. Conversely, since the overheating investment, steadily rising consumer price index, rapid growth of money and credit and greater constraints of resource had become the economic reality, the central bank take the measures such as increasing the deposit reserve interest rate and the deposit and credit interest rate to control the overheating economy. Although the main economic indicators have fallen so far, there are still factors which will probably generate inflation, and economy still have the risk of"Hard landing", the effective of monetary policy is doubted too. Therefore, it is very meaningful to research the transmission mechanism of monetary policy.First, the narrow credit channel is not smooth, it is mainly due to the equilibrium credit rationing of commercial bank. The central bank and enterprises are very effective in the narrow credit channel, although the central bank can not control the sources of fund, it can control the sum of using of fund, Enterprises use the credit to the productive investment after getting it, and the effect is very obvious.Second, the effect of broad credit channel is not obvious. It is mainly because that central bank can not effectively control the External Finance Premium of enterprise, and there is time lag between the External Finance Premium and economy increasing. The truth that the act of central bank is null and void is due to the control of credit interest rate, the time lag between the External Finance Premium and economy increasing is due to the commercial bank is not sensitive to the External Finance Premium.Last, the paper has put forward policy suggestion on the basis of conclusion.