A Study On The Relativity Between Monetary Policy And Enterprise Investment

The monetary policy has become one of the methods to control the economy since the people’s Bank of China began to exercise the functions of the Central Bank in 1983. Investment, as one of the key control areas of the monetary policy in China, is an important force improving the economy of our country. Its main body is made up of numerous micro enterprises. Throughout the existing research results, macroeconomic theory needs to find its usefulness evidence form the micro individual behavior and this has become a new trend. To find out the relationship between the monetary policy and the investment of enterprises can not only verify the usefulness of the theory of monetary policy of China, but also improve the enterprise investment theory.This paper summarizes three transmission channels of monetary policy basis of theoretical research. They are the currency channel, the credit channel and the price channel. Then writer analyzed the relationship between the money supply and investment rate with the data from Shanghai listing Corporation. The results show that the investment rate has a positive correlation to the money supply. The companies with small financing constraints are more likely to obtain credit funds than the ones with large financing constraints under the condition of loose monetary policy. So they are more sensitive to the monetary policy. At the same time, monetary policy can also play a role by the stock market. The company, which capital of market is higher than the capital cost of itself, have a higher degree relates to the monetary policy. In the end, the writer gives some suggestions for the Chinese monetary policy can control the investment of the enterprise in a better way.