Credit Market Imperfections On The Impact Of China's Monetary Policy Transmission Mechanism

The traditional theory of the monetary transmission mechanism is based on a balanced model from the macro perspective and is mainly in perfect competitive markets. However, because of the complexity of macroeconomic phenomena, they must find its foundation- structural economic analysis and behavior analysis, different micro-market behavior differences and the different structure of the environment, would make the same financial and monetary policies were different conduction of macroeconomic consequences. Thus, it is necessary to do in-depth study from the perspective of micro-based monetary transmission mechanism. The starting point is due to incomplete information which arising from the issue of financial friction. and the resulting arising from the financial market imperfections.The contents and structure of this paper break the traditional monetary transmission mechanism study limitations, add Information Economics to conduct analysis and micro-structure analysis method for guidance in the micro to macro basis, establish a research monetary transmission mechanism based on the analytical framework. In such a new idea, under the guidance of the existing literature through the review and development, mining through monetary transmission mechanism for different segments of the micro foundation of the path currency laws and conduct in-depth studies, understanding and application of the transformation of economic structure and changes in the financial system of China's monetary transmission mechanism. is a very important value in theoretical innovation and financial practical significance .In this paper that the credit markets defects due to a number of reasons ,they can be divided into market imperfections and System Defects . Market imperfections is the reality credit markets have flaws, whether in developed credit markets or still not perfectly competitive credit market. System defects for a period of economic transformation of the country, due to the imperfect system created by the defect. This paper currency conduction is the impact of the monetary transmission mechanism of bank credit, Credit monetary policy transmission mechanism is from the standpoint of supply for the conduction of policy, In this paper the study is limited to the supply of credit. The conclusion is: the credit market caused the defects of credit rationing, which impact the transmission of monetary policy., and these make the results of the transmission of monetary policy is to be enlarged and uncertainty.