Stock Market Development And Monetary Policy Relationship Empirical Research

Stock market is the most part of money market. It has many functions, such as optimizing capital allocation and raising a fund financing efficiency and so on. So, it is regard as macro-economy "barometer". With development of our country stock market, stock market have an effect upon economic life is more and more big, and the effect is also more and more far-reaching. Many developed countries what Stock market develops the already pretty mature, stock market and monetary policy influences each other what have been realized by currency authority, arid some factor of stock market is considered when work out monetary policy, to put monetary policy into practice more well. Therefore, study stock market develops and monetary policy relation has important theory and practical.To begin with, penman studies theory what monetary policy transmission stock market of channel. We discussed Tobin's "q" theory, enterprise balance sheet effect, inflation effect, wealth effect and liquidity effect. Then, the penman explains our country stock market and monetary policy relation affecting each other by theory, the data and the diagram. In the demonstration studies, penman apply up-to-date metrology method such as ADF test, Co-integration test, Granger causality test, impulse reaction and model (VECM) to study our country stock market develops effect stock market and currency transmission mechanism-wealth effect. Finally, the penman depend on the result to above-mentioned demonstration, we know market capitalization and M1 market have long Co-integration relation in our country, and it is identical direction effect with M1, but effect is not big; we not discover that market capitalization and M2 market have long Co-integration relation, but penman discover M2 in effect stock market in granger causality test, This may be that currency amounts change weighs to stock supply and demand, so as to effect stock price and stock market capitalization; Our country stock market has wealth effect, but wealth effect is not evidence, the main reason is our country stock market is not perfect, for example when our country stock are in bull market, large amount creditfund are flow into stock market. Especially, a great number of inter-bank lending market' fund flows into stock market when our country IPO day earning ratio exceeds loan interest. Finally, the penman put forward some suggestions that improve our country stock market and monetary policy by our country current condition.