The Research On Asset Prices Transmission Mechanism Of Monetary Policy In China

With the development of capital market and the innovation of finance, asset prices had taken a more prominent role in finacial economy. Meanwhile , financial crisis and economy turbulences aroused by abnormal assets price fluctuation appeared in many countries. Currently, our country is confronted with the reality of asset prices turned inflation to deflation . Asset prices' rapidly fluctuation bought gigantic impact to our country's economy, the effect of asset fluctuations in price already exceed its'capital market's influence. Therefore, study the function of monetary policy to asset prices and monetary policy's asset prices transmission mechanism according to our counrty's economy is significant.Firstly, this dissertation expatiates the monetary policy's transmission mechanism theory systematically. And discusses the monetary policy's assets price transmission mechanism more detailed.Understand the impact of monetary policy on asset prices and the mechanism of monetary policy's effect transmit to real economy.Based on the previous theoretical analysis, we use the historical data to exam the asset price bubble empirically in China, estimate the effect of monetary policy to asset prices. Deeply analysis the effect of monetary policy influence the consumption, investment, inflation via asset prices channel. Through the two steps transmission ,we conclude the results that: To a certain degree, the monetary policy aggravated the asset prices'fluctuation, the asset market appeared to be rapidly soared and shrinked in a short period of time. And monetary policy's effect transmitted to real economy via asset prices channel is not smooth, the impacts of asset prices on consumption, investment and inflation are different from each other, the house price's impact to investment is prominent, others factors' impact are not prominent in China. Finally, Summarize the empirical analyse results and suggest that the central bank should applied efficient policies to avoid asset prices fluctuation and dredge up the asset prices transmission mechanism.The possible innovation of the dissertation lies in two aspests: firistly, domestic research mostly analysis the impact of macroeconomic from assets price only to the single market of stock or house. This dissertation shows a systematically empirical study and comparative analysis of the impact of stock price and house price on China's economy remedies in the insufficiency of the present research in this field in China. Secondly , the dissertation applies OLS estimation, Unit Root Test, Granger Causality Test, cointergration Test and VAR model in the empirical analysis of the impact of asset prices on Chinese inflation through VAR model.