The Research On The Conduction Effects Of Shanghai Interbank Offered Rate In The Money Policy

Ever since the PEOPLE'S BANK OF CHINA proposed the Shanghai Interbank Offered Rate(be called SHIBOR for short) on 4th January 2007, it gradually became the base interest rate in financial market in China, at the same time it also played the key role in the conduction process of money policy. Whether the money policy reform could be successful, depends much on the performance of SHIBOR. So it's meaningful on both practical and theory aspects to research the conduction effect of SHIBOR under this great background.In this paper, the author will divide the SHIBOR into two parts by SHIBOR3M, and research the both parts separately. In the first part, the author will investigate the reflection of SHIBOR in money market, and then research the conduction effects of SHIBOR. In the second part, the author will first investigate the reflection effect of SHIBOR on market anticipation, and then research the conduction effects of SHIBOR in the bonds market. By this method, the author could fully study the conduction effects of SHIBOR in money policy from both liquidity and anticipation.We can observe the real status and conduction effects of SHIBOR in the money policy through this paper which provided useful references on the building of SHIBOR and the reform of money policy.