The Study On Chinese Stock Market And The Interest Rate Transmission Mechanism

The monetary policy is the vital approach to the macroeconomic control.The government regulates the state's macro economy through various means,such as adjusting the interest rate,deposit reserve ratio and rediscount rate.The monetary transmission mechanism is a key content of the monetary policy,and the channel and efficiency of monetary policy transmission mechanism directly influence the efficiency of macroeconomic control.The conduction theory of China's monetary policy has been mature,which has already been proved in the practice of our country.With the perfection and development of the financial system,the monetary transmission mechanism of our country has also changed dramatically.Especially with the flourish of the stock market and the improvement of mechanism management of stock market,the interest rate transmission mechanism of monetary policy in china has changed essentially,while the efficiency has been improved greatly.This paper will argue the above viewpoints from theories and real examples respectively,attempting to explain the influences which the development of stock market has conducted on the efficiency of the interest rate transmission mechanism.In this paper,the author does studies on the impact of the state's stock market to the interest rate transmission of monetary policy transmission mechanism,at the same time on the horizontal comparison among various transmission mechanisms.Through these means,this paper explains the influence of the state's stock market on monetary policy, and then uses foreign experience for reference to analyze the problem existing in the transmission mechanism of interest rate of our country.It also puts forward some policy suggestions according to its status quo.Through expounding the influence of stock market on each link of interest rate conduction,and the mechanism of impact on stock market from interest rate,it offers the decision-making for listed company and institutional investor to appoint the macroscopic strategy.Such explanation has not only improved and developed the monetary policy theory with distinct Chinese characteristics under the condition of the economic transition;it also has played a very good foreshadowing role on the follow-up study of theoretical subject of the monetary policy.Absorbing and benefiting from the basis of the former achievements,this paper uses such a method which combining the normative research and empirical study together. First,there is a retrospect of monetary transmission theory and an exposition of the development status of Chinese stock market.Next,it explains the influence of the stock market development which has effected on the channel and efficiency of interest rate transmission mechanism from theoretical aspect.And then the author carries the positive research of this kind of impact,as well as putting forward the countermeasure and proposals on this basis.