The Study On The Credit Channel Of Transmission Mechanism Of Monetary Policy In Our Country

The way monetary policy influenced entity economy is the transmission mechanism of monetary policy. It is the monetary policy transmission mechanism that decided the validity of monetary policy to a great extent. Therefore, the monetary policy transmission mechanism has always been one of core contents of monetary policy theory. The essence of the transmission mechanism of monetary policy is the entire process that the Central Bank makes use of monetary policy tool to influence and change the economic activity of microscopic economic subject, in order to achieve the ultimate objective of the monetary policy. Theoretically, there are two kinds of mentalities to the research of monetary policy transmission mechanism, monetary channel and credit channel.The Western scholar has the widespread argument on the existence and the importance of the credit channel. But because our country is being in the transition stage from planned economy system to market economy system, and our country's market mechanism is not perfect compared with that of the developed country, the financial system and the tangible economic system has not linked up to a whole body .Therefore, the interest rate transmission mechanism is less important in China than in the western developed country. It is the credit channel that is the main channel of monetary policy conduction in our country.Since 1998, although the monetary policy of our country has been greatly improved, the validity of it is still not high. There are several reasons that caused this result, but the most essential factor was that the credit channel of monetary policy conduction has been blocked. Therefore, the most realistic and the urgent duty is to improve the environment and condition of the monetary policy conduction.Under such background, the author studied the credit channel of China. This dissertation consists five parts, and the contents of each part are as follows: The first part of the article includes the background of choosing this topic, the research methods and the literature survey. In the literature survey part, the author carries on the brief summary to the West monetary policy transmission mechanism, including monetary view and credit view; and then introduced the research achievement on credit channel of our country's scholars.The second part is the introduction of the credit channel theory, including bank credit channel and balance sheet channel.The third part includes two parts.In the theoretical analysis part, the author dwells on the effect of three monetary policy tools on the credit supply, the rate of the legal deposit reserves, discount and open market operation. Also, the author analyzes how credit affects investment and consumption.In empirical analysis part, after reviewed the historical evolution of our country's monetary policy conduction, the author achieves the conclusion through the concrete analysis that the credit channel is the main channel of monetary policy conduction in our country at present.The forth chapter is concerning the malfunction and decreasing effect of the credit channel mechanism, to analyze the main reasons and make a qualitative analysis from such sides as base environment, Central Bank, commercial bank , individual and enterprise.The fifth part deals with the policy that makes monetary policy transmission mechanism operate well and improves the efficiency of monetary policy. It expounds from such angles as environment of monetary policy's operation, the regulation of central bank, comprehensive operation of commercial bank, the establishment and consummation of modern enterprise system.