| Monetary policy plays an important role in the economic growth of one country, and it needs a perfect environment to achieve the goal. Because of neatly reflecting the changes of short-term fund's demand and supply, exactly reflecting the market information, money market becomes an important place to execute monetary policy. So, as a sub money market which can directly affect the real economy, the bill market has a great function in the monetary policy transmission.Bill is the result of credit which is the foundation of bill market. So it is necessary to use the credit view to analyze the function of bill market in the monetary transmission. The credit condition of bill market can affect two intermediary target of monetary policy-money supply and interest rate by affecting basic money, money multiplier, discount rate and money market interest rate. Also it has an influence on the rediscount rate which is as one of the monetary policy instrument.Different finance arrangement will make the finance market have different forms, the function to the monetary policy transmission will be different accordingly. Credit is the base of the bill market, while the systematic factors decide the frame of the bill market. So in order to understand the function of bill market in the monetary policy roundly, we should analyze in the view of system. Our bill market belongs to the compellent system vicissitude, which will affect two intermediary target of monetary policy-money supply and interest rate by affecting basic money, discount rate and bill market interest rate. Meanwhile, it can affect the monetary policy transmission directly by changing the financing structure of the society.After the analysis above, we can find many problems in the bill market, these problems restrict the validity of monetary policy greatly, so in the last part we give policy suggestion about the development of bill market. |
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