Stock Market Bubble Of The Challenges For Monetary Policy

With the development of the market economy, the status of stock market is prominent increasingly in the economic of state. Price fluctuations of stock market can impact the national economy operation through a certain degree of conduction channels. Especially when the stock market bubble occurred, the impact will be even more serious and far-reaching. Therefore, in order to stabilize the healthy development of the national economy, we need to avoid the emergence of the stock market bubble and expansion. At present, the monetary policy implementing in most countries of the world holds price stability, full employment, promote economic growth and balance of international payments as the goal, without giving too much attention to the stock market. However, in the late 1980's, the Japanese bubble economy and in the late 1990's , bubble economy of the U.S. networks, as well as the recent Chinese A-share market bubble, the four key objectives of the real economy only concerned by monetary policy can not guarantee the smooth functioning of macroeconomic. Absolutely, it is a severe challenge to our current system of monetary policy. So we need to analyze the relationship between them, and to explore whether monetary policy should stabilize the stock market into the monetary policy goals.Combined the theory research with positive analysis, and with a large number accurate data, the thesis attempts to analyze this question objectively. The thesis consists of four parts. The first part focuses on the basic theory of the stock market bubble. The second part focuses on the challenge of the stock market bubble to monetary policy from a theoretical analysis. Taken Japan for example, the third part focuses on challenge to the current monetary policy by stock market bubble from practical. Taken the United States for example, the fourth part focuses on challenge to the current monetary policy by stock market bubble from practical. The fifth part contacts the actual conditions of China, and draw conclusions for China.