Research For The Monetary Policy Transmission Channel In China.

This paper introduce the theories of the monetary policy transmission channel systematic .Based on it, Experienced method of combining together with quantitative and qualitative analysis from micro subject agency was used to study the monetary policy transmission channel(divided into a monetary channel and a credit channel mainly) in China in this paper. we use cointegration test and Granger Test based on the Vector Auto-regression Model to carry out the empirical analysis of China's monetary policy transmission channel and the efficiency of monetary policy with the quarterly economic and financial data between 1998 and 2006.The results show that the money channel and the credit channel are both the important channels of Chinese monetary transmission, while the impact of latter on macro-economy is stronger, so the credit channel plays a dominant role in the monetary transmission channel in China.Then, we analyses many elements of affecting the effectiveness of the monetary policy transmission channel. Mainly including that the central bank lacks the flexibility to the regulation of the basic currency , the independence and autonomy; Because of operating mechanism being imperfect, commercial banks have many bad assets and unreasonable loans, and also the structure of the bank centralize too much; The corporation governance structure of the state-owned enterprise is unreasonable, the property right is not clear, small-and-medium-sized enterprises have trouble in financing; Because of lacking the social security system, residents are pessimistic to their future income, so they can't consume actively etc. Therefore, the effect of the monetary policy transmission channel depends on there factors:Whether the draft is reasonable and scientific; Whether commercial bank and financial market can conduct efficiently; Whether the enterprise and consumer can cooperate with it. This chapter mainly begins with the above several aspects to analyses the effect of the factors towards the effectiveness of the monetary policy transmission channel.This paper finally propose the countermeasure of the mechanism of monetary policy transmission. Mainly in view of the above each influence factor proposed each kind of policy suggested, for example: Strengthens the function of the Central Bank, speeds up the innovation of the commercial bank to reform, perfect the money market, Speeds up the enterprise to reform, causes it become the main body of the market economy, Speeds up the innovation of the interest rate market ,exert the function of the Interest Rate Channel and so on.