Defects Of China's Monetary Policy Transmission Mechanism And Its Perfect

According to transmission channel, this thesis categorizes monetary policy transmission channel into four classes: Credit channel,Interest rate channel,Capital asset price channel and Foreign exchange rate channel.After a theoretical and empirical study on the four channels,. we get a result which shows that: under open economic environment, monetary policy should be transmitted by multi-channels, while the Interest rate channel is the main channel and the Credit channel is the secondary channel. It is also the direction of Chinese monetary policy transmission mechanism development.It is scientific to use a econometrics model of VEC to test the present of monetary policy transmission mechanism of china by adopting Unit root test, Cointegration test and Granger causality test and Impulse response technique, and the result shows: a) Chinese monetary policy is transited by both Money channel and Credit channel, and both of are independent; b) Credit channel which is main channel is more efficient; c) all of the channels are ineffective.According above study, this paper analyzes the defect of the monetary transmission mechanism and brings out a series suggestion to perfect it: a) to perfect the micro basis of monetary policy transmission mechanics; b)to promote the efficiency of Credit channel; c) to improve the impact of Interest rate channel and Capital asset price channel; d) to bring Foreign exchange rate channel to play.