Fluctuations In Asset Prices And Monetary Policy

Since the financial assets and assets trade appeared, the question of the assets price rising and dropping suddenly and sharply has been perplexing the economical operation of various countries all the time. As the position of capital market is promoted progressively in economy, the capital market caused the change of the financial structure. It is greater and greater that the assets price fluctuation threaten the stability of the economic and financial system. Therefore people pay great attention and make extensive discussion to the assets price and monetary policy.By discussing the assets price fluctuation will take what kind of influence to macroeconomic and monetary policy, the paper draws a conclusion that the assets price is very important to macroeconomic and monetary policy; and the paper make an in-depth analysis that in the new economic environment, how monetary policy pays close attention to assets price fluctuation.Along this logic clue, Basic frame of this paper is as follows:In the chapter one, through studying the micro-factor of the assets price fluctuation, the paper has probed into the influence channel and effect on economy as the assets price fluctuates.In the chapter two, the paper probes into the effect on monetary policy from three respects: the monetary demand, the speed of money flow and the transmission of monetary policy.In the chapter three, Combining theoretical research and analyzing the real example of china assets price fluctuation (the stock market) affecting to monetary policy, the paper draws the conclusion: It is not remarkable that the assets price fluctuation influences the monetary policy.In the chapter four, through the theoretical research of monetary target and the mathematics model of monetary policy, this paper puts forward that the central bankshould adopt the conditional perspective monetary policy to keep a close watch on the inflation of the assets price fluctuation. As the capital market of our country is not perfect, the monetary policy is unsuitable to peg to the assets price, but it is necessary for the Central Bank to pay close attention to the assets price fluctuation strictly.