| The transmission mechanism is the core of the study of monetary policy and affects the economy directly. The interest rate is a kind of important tool to regulate macro-economy for the government. However, the transmission mechanism of monetary policy in China has been limited to the credit channel for a long time. The precondition of the credit channel is the imperfect financial market, therefore, as the development of the financial market, the interest rate transmission mechanism will play an important role in promoting economy growth in the future and the transmission mechanism should be transferred from the credit supply mechanism to the interest rate mechanism with the changes in the financial system and structure and the transition of financial macro-adjustment. Besides, the interest rate will still affect the economy greatly in spite of the financial restraint policies of interest rate controlled by government. So, it is very important to study the interest rate mechanism of monetary policy for promoting economy growth. This is also the main research clue of this article.The author uses the achievements of former studies for reference, and gives the own viewpoints by constructing a proper structure to analyze the subject. First, the article introduces main theories of interest rate transmission mechanism in western countries, and then studies the actuality of the effect of interest rate transmission mechanism in China demonstratively. After that, based on the essential analysis of... |
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