Capital Market Impact Of Monetary Policy

In the light of the conclusion that different development degree of the capital market decide its different affect on macro- economy and currency policies, this thesis try to analyze and answer the relationships between monetary policy and capital market from the angle of the development of capital market influencing on monetary policy. The reasonable thinking that figure out "the currency policy should or should not pay attention to the variety of asset prices" is that why monetary policy pays attention to the variety on asset prices. The further extension of this thinking is that how the development of capital market influence monetary policy and have to make monetary policy put forward such problem and challenge. Therefore, the analysis of the development of capital market become the basic method of solving the problem of monetary policy and asset price. This method includes two thorough analysis: the first is that how the development of capital market affect macro-economy after all and this means capital market affecting the exterior environment of monetary policy, calling it as indirect affects; the second is that capital market influence money demand, money velocity, transmission mechanism of monetary policy, the target and operating tool of monetary policy. This influence is direct influence of capital market on monetary policy. Through the analysis of direct and indirect influence, we can get the conclusion of the connection mechanism of monetary policy and capital market and of weighted influence on the establishment and implementation of monetary policy, and conclude and judge further if we should pay attention to the variety of capital market by changing monetary policy.Chapter 0, Textual introduction part, is main to made a concise overview on the development of current capital market and the research on capital market influencing monetary policy by domestic and abroad scholarsChapter 1 firstly analyze the transmission mechanism of monetary policy by stock market in theory, then analyze it in demonstration way.Chapter 2 mainly explain that the development of capital market affect the middle target of monetary policy from three aspects of bank, enterprise and resident,briefly express the change of middle target of monetary policy in current world and the research on it by our scholars.Chapter 3 firstly analyze the development of stock market affect the validity of monetary policy, then analyze how capital market influence indirectly the validity of monetary policy through money demand and money velocity, and demonstrate that capital market impact on money demand and money velocity.Chapter 4, as final part, mainly research the transmission mechanism of monetary policy by stock market, the choice of the middle target of monetary policy and how the establishment and implementation of monetary policy concern capital market, and put forward the related suggestion.