Research On Monetary Policy Transmission Mechanism Based On Stock Market

The association between stock market and monetary policy has become a hot topic in the financial field. The quick development of stock market recently in China enables it to be a new channel to transmit monetary policy, and the stock market itself attracts more and more people to focus on it. Many investors in our country do a lot of research to study the consumption and investment effects of monetary policy transmission and get different achievements. In order to know whether the effects of monetary policy transmission through stock market has had a big change nowadays as stock markets develops, this thesis conducts a study on them by combining the theory of monetary policy transmission with the realities of economy and finance in China.The paper analyzes the monetary policy transmission mechanism of qualitatively and quantitatively on the basis of existing document. Firstly, the history and intrinsic integrant part of monetary policy transmission mechanism which is divided into internal transmission mechanism is econometrically analyzed. And then estabilshed a VAR model of monetary policy transmission mechanism, it analyzes the relationship between money supply, price,stock index, consuption and investment.