Research On The Fluctuation Of Asset Prices And Monetary Policy Adjustment Optimization

With the development of various types of asset markets, asset prices fluctuation is causing more and more impact on the macroeconomy. Asset prices fluctuation in the transmission mechanism of monetary policy has undergone major changes, thus changing the monetary policy effects. The fluctuation in asset prices due to the financial crises. The asset prices fluctuation and monetary policy is a big problem to the policy researcher. How to deal with asset price fluctuations need to do careful research.Through the theoretical analysis and empirical research, we have analysed the correlation between the asset prices fluctuation and monetary policy system. The domestic and international related theoretical results on the relationship between the asset prices fluctuation and the policy are briefly reviewed in the first chapter. We should establish theoretical foundations, whether the asset prices fluctuation cause financial risks and how to formulate the associated monetary policy. The theory of the monetary policy was reviewed. And the asset prices fluctuation on the impact of monetary policy system was analyzed. The theory and practice on the monetary policy intervention of asset prices fluctuation was discussed in the second chapter. The typical financial risks caused by asset prices fluctuation was analyzed, thereby affecting the real economy. Historical experiences can be expected to find the asset price volatility and the relationship. Monetary policy obtained asset prices reflect the experiences and lessons learned in the third chapter. Econometric model was used to select asset prices and monetary policy objectives of each level. This article combined actual data and an empirical test selected, including Granger causality test, impulse response function analysis and variance decomposition analysis. Analyses of all the chapters were summarized and targeted policies were put forward in the fifth chapter.Through analysis, there are Granger causaliies among our intermediate target of monetary policy (including the money supply, interest rates), the ultimate goal of monetary policy (including the CPI and the GDP gap) and the asset prices, and influence each other. Monetary policy on the asset prices fluctuation responded that asset prices can affect the central bank policies; also to some extent, monetary policy can also play a regulatory role of asset markets, and eventually play a regulatory role on the national economy. This asset price volatility provided a theoretical basis and practical support for the central bank intervention.