Stock Market Bubble--the Research On The Obstruction Of Monetary Policy Transmission

The main content of this essay is to adopt microscopic analysis and game theory analysis, most theory analysis and some empirical analysis methods to study the monetary policy transmission through stock market, focus on explaining the obstruction mechanism of the monetary policy transmission through stock market and why and how the monetary authorities respond to the stock market. The essay consists of four parts. The first part is the introduction, describing the background and study theme, articles and research framework and the methods. The second part focuses on the obstruction mechanism of the monetary policy transmission through stock market, explains why the obstruction exists and how the monetary authorities respond to the stock market. The third part is the empirical analysis of the relationship of the stock market and macro economy and whether if the central bank react to the stock market. The fourth part is the summary and the policy suggestion for China.