Credit Rationing And Effectiveness Of Transmission Of Monetary Policy In China

Credit Rationing,as a phenomenon in economics,Adam Smith and Keynes have once done researches about it.At the same time,it is also a problem drawing the researchers' attention at home and abroad.It is because credit rationing is an imperfect phenomenon which could happen in any country on the condition that there is asymmetric information in credit market in that country.And credit rationing,as a phenomenon existing in society generally,is drawing so many researchers' attention because it could lead to a series of economic reactions.This passage is just to research the influence of credit rationing on the efficiency of monetary policy made by central bank.In real economy,an obvious turning point happened during the period of the implement of monetary policy made by central bank in our country.Before the year of 1998,the influence of monetary policy on macro-economy is obvious,but after that it is a little disappointing for the results of monetary policy made by central bank.In view of this phenomenon,the passage with the reality explains the reason why the efficiency of monetary policy transmission reduces in our country using credit rationing theory.Since credit channel is the main monetary transmission channel in our country,the credit rationing of commercial banks will influence money supply of central bank naturally and influence the results of monetary policy finally.All of these weaken the results of monetary policy made by central bank and make the lag of monetary policy longer.Meantime,the passage tries to compute the "Threshold" using the model made by Galbraith in order to reflect the degree of credit rationing and the degree of perfection in credit market in our country.The results conclude that the commercial banks' gradual rational credit actions made by the reform of transforming state-owned commercial banks into stock entities will reduce the efficiency of monetary policy transmission on the condition that the capital market in our country is imperfect currently and other monetary policy transmission channels cannot play their roles well.