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The Research Of Monetary Policy Impact On Stock Market

Posted on:2011-06-29Degree:MasterType:Thesis
Country:ChinaCandidate:J D WangFull Text:PDF
GTID:2189360305961947Subject:National Economics
Abstract/Summary:PDF Full Text Request
From 2001 to 2005, China's stock market experienced a four-year bear market. But from 2005 to 2007, an unprecedented bull market had arised, The stock market capitalization increased by nearly six-fold. After that, in the first six months of 2008, the stock market has fallen more than half. Faced with such ups and downs of the stock market, people didn't know how to deal with it. Based on various angles, Scholars'conclusions are different by analyzing the stock market. In this paper, I analyze the monetary policy impact on China's stock market based on monetary policy. By using the Co-integration test, Granger Causality test, Impulse Response methods, I analyzed the impaction on China's stock market made by monetary policy, and found that from 2004 to 2009, there is a long-term co-integration relationship between stock prices and money supply. It is mean that money supply impact on the stock market. However, the intensity can be seen from the impact of monetary policy effects are not obvious. Description of China's monetary policy transmission mechanism for the gradual improvement of the financial markets, monetary policy effects sign of strength, but need further improvement. These conclusions are useful for monetary policy-making, especially for stock market analysis and forecasting of great theoretical and practical significance.
Keywords/Search Tags:Stock Price, Co-integration Test, Granger Causality Test, Impulse Response Function
PDF Full Text Request
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