The Research On The Transmission Effects Of The Stock Market To Monetary Policy In China

Since 1990's, a lot of countries'currency authority have pay highly attention to the effect of stock market in the monetary policy transmission, because the effect of stock market in the monetary policy transmission is broader and bigger in the range and intensity than before. The trend indicates that interest rates in monetary policy transmission are in the more and more key station; they also play more and more important role, at the meantime they will gradually become one of main monetary policy transmission channels. The development of stock market has brought a big challenge to the monetary policy of central bank, for the monetary policy regulates and controls, that can not be avoided in the reform and develop process of our country's finance system. In the reform process of promote the regulate and control mechanism of monetary policy to be indirect, build the new monetary policy frame which is fit in with stock market as fast as possible, that would be the necessary required of current economic growth. So, the study of stock market effects of monetary policy transmission in china is of great importance.The content of this paper is as follows. First, this paper basises on the common theories of monetary policy stock market transmission mechanism, and draws lessons from the practices of stock market transmission mechanism in some developed marketing economic countries, such as USA, England, and Germany. Concluds that stock market is in the sight of monetary policy is of objectivity and universality. Second, stresses on explaining the effect of stock market in monetary policy transmission. According to the transmit process, expound the relation between the center bank's monetary policy and stock market, the relation between stock market and real economy. Namely, empirical analyses the relation between money supply and stock market, the relation between interest rates and stock market, Tobin's q effect, wealth effect, balance-sheet effect, liquidity effect, and inflation tax effect. Sum up the effect and defect of stock market in monetary policy transmission. Finally, pick up the measures to advance and perfect the stock market transmission effect. For instance, design the transmission mechanism between monetary market and capital market; promote the reform of interest rates marketilization, improve the stock market and put it into standard to tamp the foundation of the monetary policy transmission, perfect the system of monetary policy operation, be strictly on guard against the bank credit funds enter in stock market violate regulation, and so on.Applying the theoretical analysis, empirical research, this paper mainly concerns the stock market effects of monetary policy transmission in china, and has the following conclusion, at present, the effect of stock market in the monetary policy transmission is exist, but the effect fails to be brought into full play caused by some factors. We should accelerate all the reform steps to create necessary conditions fou stock market effect.