Study Of Micro Transmission Mechanism Of Monetary Policy In China

The decision and implementation of monetary policy depends on the specific macro economic environment and micro foundation. In Western countries, the study of monetary policy is based upon ripe market economic system and developed financial market system, and the market-oriented monetary policy has reached a good effect in macro economic control. But China's market economic system is evolved from traditional planned economy. The flaw of market system and the micro-behavior distortion are related to system transformation. Only to further investigate macro economic environment and micro foundation that monetary policy relies on, the effective monetary policy could be made.Based on the New Classicism Macroeconomics and the New Keynesianism Macroeconomics, this paper has explored the influences of behavior of China's micro foundation on monetary policy transmission, and announced the characteristics of the monetary policy transmission, focusing on residents' deposit and consumption, enterprises' investment and financing, financial institutions' development. The conclusion is drawn that the behavior of micro foundation of monetary policy of our country is unfavorable to the transmission of monetary policy. So the monetary policy transmission is obstructed on the micro dimension.And, this paper has explored the response of China's micro foundation to interest rate policy with empirical studies. The result is drawn that the behavior of micro foundation is not sensitive to interest rate policy, and the effect of interest rate policy is not remarkable.Finally, in order to perfect micro foundation of monetary policy and give full play of monetary policy to regulation of real economy, this paper proposes some countermeasures as follows: to further strengthen the market economic system reform, to perfect the financial system and structure of our country, to improve PBC's efficiency of the monetary policy decision.