Study On The Evolution Of Monetary Policy Transmission Mechanism In Economic Transformation Of China

Monetary policy has become one of the important means for the Western countries to adjust economy, so as in China. Since 1984, the People's Bank of China officially assumes the functions of the Central Bank in China, China's monetary policy transmission mechanism constantly changing. The transition economy of China is different from western countries which have sound market economy system, also different from the highly centralized planned economy. This led to the transition of China's monetary policy transmission mechanism has distinct Chinese characteristics. Adhering to the conditions of this thesis, we try to analyze the transition of monetary policy transmission mechanism of the process of evolution, so as to identify the transition of China's monetary policy transmission characteristics of the obstacles and reasons, and optimize China's monetary policy transmission mechanism. This paper has four main parts:The first chapter is to introduce the theory of monetary policy transmission mechanism. These theories are originated in Western countries; however, the application of these theories is not unconditional. Most of them can fully play its role only in the more mature market economic system, so we must consider the situation in China when we use them. In the final of this chapter, we briefly introduced the study of the transition monetary policy transmission mechanism of China's domestic scholars.Chapter II is the focus of this paper. We know that the process of monetary policy transmission can be divided into economic variables conduction and the institutions conduction. The process of economic variables conduction is monetary policy tool -- operating objectives -- intermediate goal -- the ultimate goal, so the institutions conduction is the main central banks -- financial institutions -- businesses and residents -- the national income. These two transmissions are not isolated to perform their functions. They must be placed on certain economic and financial environment, which will be meaningful inspection. This chapter is in accordance with the above ideas. We will study China's monetary policy transmission mechanism from three aspects in the evolution of the transition period. First, we analyzed the choice and evolution of economic variables in the transition of China's monetary policy transmission. Secondly, in the conduction of institution, we inspection the response of financial institutions, enterprises and residents on the implementation of monetary policy of the central bank's, form a view of micro-feature. Finally, we analyze the environmental constraints of the monetary policy transmission mechanism in the transition period, from the nation's financial system environment and the financial market conditions. By the end of this chapter, we attempt to reveal the reasons of the evolution and the future direction of the monetary policy transmission mechanism, from the features of endogenous, evolution, relevance, complementarity and diversity of endogenous system, which is on the basis of defining our transition monetary policy transmission mechanism as an endogenous system.Chapter III is to analyze the main problems and the reasons of the current monetary transmission mechanism. China's open market operations do not have a solid foundation, interest rates have not yet market-oriented, some tools of monetary policy in use will be limited. The large state-owned commercial banks in China with its monopoly status prevent the monetary policy around the smooth conduction, which limits the transmission diversification of monetary policy. Enterprise investment blindness, due to the monetary policy response is not sensitive. There are a number of reasons to make the monetary policy transmission mechanism is not smoothChapter IV sets out to improve China's monetary policy transmission mechanism of countermeasures. To improve the conduction of the monetary policy environment constraints, the First, we need to accelerate the process of market-oriented of interest rates. Second is to further improve the formation mechanism of RMB exchange rate. The last is to further develop and improve our financial markets. To remodel the micro-institutions of the monetary policy, first, we should further deepen state-owned commercial bank's reform, transformation and development of small and medium-sized banks. The second is to improve the corporate governance structure, and establish a new type of bank-enterprise relationships. Third, improve the balance structure of residents and raise their enthusiasm expectation, so to provide a good foundation for the monetary policy.