Interactions Between Monetary Policy And Stock Market

With the economic globalization, the pace of asset securitization continues to advance China's stock market and the growing influence of the stock market savings into investment is increasingly becoming an important channel, and depth to all aspects of the economy. On the stock market and monetary policy, on the one hand, the emergence and development of the stock market has gradually changed the currency market, the structure of various currencies and demand; other hand, with the stock market and the growing influence of the deepening the formulation of monetary policy more or less subject to stock market fluctuations. In recent years, for the central bank should intervene in the securities market and monetary policy and stock market how the relationship between the interaction, there is no uniform national economists, findings, and for more or less the problem of the existence of some deficiencies Therefore, the study of monetary policy transmission effects of the stock market; of whether monetary policy and how severe volatility in the stock market to serve as the stabilizing agent to the role of central bank monetary policy makers significance.This article is after the financial crisis (ie the stock market boom and the stock market was a serious blow after) two periods, the central bank monetary policy and the relationship between the stock market problems.First, from the theoretical analysis of monetary policy and the relationship between the stock market. Including: how the stock market affect the real economy through monetary policy; the stock market as a monetary policy transmission channels of the operating mechanism; money supply of the stock market; the relationship between interest rates and the stock market.Then, after the financial crisis combined with the actual situation in China, from an empirical point of view, the use of SVAR models, impulse response functions, variance decomposition and econometric methods, the stock market to pass through the channels of the real economy impact of its monetary policy, and changes in monetary policy for the stock market reactions. Specifically including: GDP and CPI on the stock price (SP) and market capitalization (SZ) the dynamic changes in response to the situation; the stock market (SP, SZ) on the M0, M1, M2 money supply three levels of response to changes in the situation; SP , SZ on the seven-day interbank interest rate changes of the dynamic reactions. To draw the following conclusions:l. Stock market volatility on the GDP of the existence of relatively weak positive impact, the impact of the financial crisis has increased. Our stock price (SP) and market capitalization (SZ) and future changes in CPI change is related to, and in the financial crisis, this relationship has been strengthened, but still weak. Therefore, at present, the monetary authority's strategy for the stock market should be "concerned" and not "pegged."2. Changes in money supply on stock prices (SP) and market capitalization (SZ) effect are basically the same, and in the financial crisis, the impact has increased, but the magnitude is limited. After the outbreak of the financial crisis, seven days a change of the interbank interest rate on the extent of the stock market greatly enhanced. Therefore, the monetary authorities to use changes in interest rates affect the stock market means more effective.By combining theoretical and practical analysis of the financial crisis revealed the stock market before and after the monetary policy and the interaction between government departments in order to effectively regulate the securities market and even the national economy, and provide a reference for future researchers.