| In recent years, the growing capital markets and emerging financial products made monetary policy more and more be influenced by the asset prices. What's more, asset price had played a prominent role in financial economy. In 2008, most countries had suffered severe economic turmoil triggered by unusual fluctuations of asset prices in the global financial crisis. And from the point of China's actual economic performance, dramatic fluctuations in asset prices especially the fluctuations of the stock market and real estate market had serious impact on the stability of our country's economy. The continue rising of house prices not only affect the operation stability of the banks of China, but also reduced the consumption of the whole society. Therefore, the study on the relationship between China's asset price volatility and monetary policy is meaningful.At first, the theory about the relationship between asset price volatility and monetary policy was systematically elaborated. In this essay, monetary policy's transmission mechanism of asset prices and asset prices'feedback mechanisms of monetary policy had been paid more attentions, in other words, our analysis focused on interaction relationship between monetary policy and asset prices volatility. Through theoretical analysis, economic variables were appropriately selected to explain the relationship among various economic variables in our theory. Then, in order to sort out the relationship between monetary policy and asset prices volatility, economic variables were systematically empirical analyzed by using some financial econometrics methods, such as OLS regression and unit root tests, Granger causality test, VAR model of co-integration test. Furthermore, the reasons why there are differences between the theoretical results and empirical results were explained. Last but not least, a series of evidence-based rational policies and proposal were put forward according to summary of the empirical results. |
PDF Full Text Request