Study Of Monetary Transmission Mechanism Of Stock Market In China

Since the 1990s, Stock market of our country has rapidly developped with the high development of economy and the market economic system reform , influenced our national economy profoundly day by day . The monetary transmission mechanism receives serious challenge. Many countries in the world have experienced the harmful consequences which severe fluctuation of the stock price brings.Therefore,it's urgent and meaningful to do research with our country's monetary transmission mechanism of stock market based on our own reality.In this paper,we first give explanation to the content of the monetary transmission mechanism,review and analyse the traditional monetary transmission mechanism theories.On this basis,we introduce the theories and empirical studies of the monetary transmission mechanism of stock market in detail,cleared off the monetary transmission mechanism of stock market channel through which monetary policy influences the entity economy. Second,based on our own reality,we review the change and development of our country's monetary transmission mechanism,the money supply and it's structure,the stock market development stage and it's characterstic and the development of the entity economy-to recognize the circumstances of the monetary transmission mechanism of stock market straight-forwardly.Third,we separate the monetary transmission mechanism of stock market into two parts:how monetary policy influences stock market and how stock market influences entity economy.From the empirical study of monetary transmission mechanism of stock market based on our own data,we concluded:monetary policy can influence stock market efficiently,but stock market has little,even no influence on investment and consumption.From the conclusion,we discuss the possible reasons which may restrict the influence of the monetary transmission mechanism of stock market.Finally,after the analysis on the existing problems,we give suggestions and advices to perfect the monetary transmission mechanism of stock market,so as to raise the efficiency of this monetary transmission mechanism.