Based On The Monetary Policy Transmission Mechanism Of Stock Market Research

Since the 1980s,financial innovation,financial liberalization and globalization of capital markets have been deepening the development of the stock market.The financing function of the stock market,risk pricing function,the allocation of resources functions,defined functions has become more and moreimportant,and in people's day-to-day economic life,it is increasingly affecting more and more people.The entral banks of each country regard the stock market as the facts in the implementation of monetary policy.As pointed out by former Federal Reserve Chairman Alan Greenspan in August 1999,as more and more Americans invested their money in the stock market,Fed must pay particular attention to the changes in the stock market when making decisions.Since 1998 the U.S.Federal Reserve cut interest rates several or increases,which have to maintain the stability of the stock market as an important consideration.Stock market indicators of monetary policy changes is sensitive,which makes the stock market become an important signal of monetary policy transmission medium,and it laid a solid foundation for the monetary authorities to explore the effect of transmission channels of monetary policy.As China's financial markets continue to develop and improve,Non-tradable share reform causes a wave of bull market.China's stock market participation has been greatly improved.Up to now,Shanghai and Shenzhen securities account is more than 100,000,000.There are 30,000,000 people in the stock market,58 domestic fund management companies and more than 300 funds.Securities investment fund assets is more than 1,000,000,000,000,the number of people in fonds close to 20,000,000.on August 9,2007,the stock market value is more than GDP for the first time,the stock market has become a barometer of the economy which gradually strengthen the role. With the stock market development,micro-basis is changing for regulation and control of monetary policy,the original commercial banks as the main intermediary transmission mechanism of monetary policy is gradually weakening and the intermediary of the transmission mechanism of the stock market is gradually enhanced.Under this background,this thesis starts analysis and discussion on whether the Chinese stock market based on the monetary policy transmission provides satisfactory channels and transparency.The article is divided into three parts.The first partbriefly introduces stock and monetary policy transmission mechanism..The second part,as the key part,test results on the monetary policy based on the stock market's two-stage results by Unit Root Test,Co-integration theory,the Granger causality.The third Part analyzes the role of the stock market conduction reasons,and makes a number of policy recommendations.