The Effect Of Monetary Policy Under The Circumstance Of Separatness Development Of Fictitious Economy And Real Economy In China

With the rapid development of financial innovation fictitious economy isbecoming a new form of economic activity which is independent from real economyand plays a huge effect in economic activity. The effect from fictitious economy toreal economy and the effectiveness of monetary policy is also becoming increasingapparentness. The developing tracks of fictitious economy and real one showed theirown independence separately. A large number of fictitious assets don't serve realeconomy any longer. The use of monetary policy can not only respond from realeconomy of goods and services but also from fictitious economy.However, most existing studies only focus on relations between fictitiouseconomy and real economy or certain types of asset prices and monetary policy. Theydidn't take fictitious economy as a whole part of economy to study the effects ofmonetary policy.Differently, the paper focuses on the effect of monetary policy under thecircumstance of separateness development of real economy and fictitious economy.This paper analyzes the separateness development of fictitious economy and realeconomic, build a "fictitious economy index" and select the industrial added value asindex of the real economy and money supply, interest rates, loan balance of bank as anindex of monetary policy. Proceed from China's reality and taken as a whole, it can befound that the development of fictitious economy in china had the periods ofdownturn and expansion typically. Based on the VECM, using impulse responseanalysis method, the paper gives an analysis of the response of fictitious economy andreal economy after the impact of different monetary policy in the periods of downturnand expansion respectively and gives the result of monetary policy include impulseforce and acting time. It Helps the monetary authority get forward-looking referenceson using monetary policy tools in the process of fictitious economic fluctuation.