An Empirical Analysis Of The Policy Effect Of Shibor System As Mediator Of Monetary Policy

As the development of financial market and financial innovation, more social financing appear at the start of this century. Financial innovation, on the one hand, provides conditions for the emergence of more social financing, such as the rise of the Internet financial appearance of shadow banking, etc. On the other hand, it is also directly contributing to the increase of the types of business commercial Banks. All of these influence on the financial market operation and development and closely related to market development. It is imperative to reform in the historical period. The market-oriented interest rate reform is one of the important aspects. Interest rate marketization, financial instruments, and financial main body diversity are the original monetary policy and a new challenge to the validity of monetary policy tools, Nowadays these comprehensive factors influence the effectiveness of monetary policy in our country and reduce the effectiveness of M Series as intermediate targets of monetary policy.By the development of the developed countries we know that the traditional values of M series is no longer a monetary policy intermediate targets. They chose short-term interest rates to be the intermediate targets of monetary policy. From the beginning of the 21 st century, China’s central bank had begun to cultivate their market interest rate system, the Shanghai interbank offered rate(Shibor) is the core part of the system of interest rate. After the literature review, this article choose three aspects to analyze the traditional money supply has gradually not work well as a monetary policy intermediate targets. The three aspects are the credit channel weakens, endogenous enhancement, instability of money multiplier. Through the test results of Shibor interest rate system, this paper has carried on the comparative study of interest rates.Shibor interest rate system is the object of investigation, and this paper will verify its effectiveness as the intermediate targets of monetary policy. This paper also analyzes the policy effect of different period of Shibor. The interests under three months period in the Shibor system can be monetary policy intermediate targets, and Shibor overnight interest rates policy effect will be better. Then some corresponding suggestions concerning policy are put forward.