China's Monetary Policy Transmission Mechanism And Fiancial Repression

Study on the monetary policy transmission mechanism involves kinds of problems of the financial system. Therefore, it is very important to discuss the problems we already have and to find a way to solve them. In this article, we will focus on both theory and empirical analysis method to discuss the transmission mechanism of interest rate, loan, financial assets price and exchange rate in our monetary policy. Based on the efficiency of our monetary policy transmission mechanism and the overall existed financial oppression, we study all the problems that have interferences in our monetary policy. Then, we give advices to solve all the problems by considering them in an open economy.There are four parts of this article: Firstly, it tells about the relative theories about the monetary policy transmission mechanism and the financial repression. Secondly, it clarifies the efficiency of our monetary policy transmission mechanism and four kinds of financial repression through the data analysis. Thirdly, it makes detail analysis of the problems in the transmission mechanism of interest rate, loan, financial assets price and exchange rate in our monetary policy. At last, it gives advices based on the solution of the financial repression.The first part of this article introduces the theory of monetary policy transmission mechanism and financial repression. The theory of monetary policy transmission mechanism is the foundation to analysis our monetary policy transmission mechanism. The west point of the monetary policy transmission mechanism includes the transmission mechanism of interest rate, loan (bank lending, balance sheet), financial asset price (Tobin Q, financial effect theory) and exchange rate. At the mean time, we give brief introduction of the monetary policy transmission mechanism and financial repression theory by Frederic S. Miskin and the outcome of our study about the monetary...