| US subprime mortgage crisis broke out in2008whose side effects to China weremuch larger than1998's Southeast Asian Financial Crisis: bubbles in capital marketbecame illusions, the price index of stock plummeted from6000to1664.39; the stockvalue was evaporated by62.9%only in the year of2008. To stabilize the economy,the financial policy in China was adjusted from prudent monetary policy to arelatively loose one. By the implementation of loose monetary policy, stock and realestate markets saw a prosperous growth. By the year of2010, the problem of inflationand real estate bubbles appeared and the stock experienced a continued decline, sothe monetary policy tended to be tightened. Currently, European debt crisis, causedby Greece domestic crisis, strikes our economy unexpectedly when the US crisis hasnot ebbed, which led to a game between economic growth and stabilized commodityprice. It is of great practical importance to study whether China's monetary policycan control assets price and then influence the entity economy under these economiccircumstances.From perspective of asset price transmission mechanism in monetary policy,referring to research finding both abroad and at home, and this essay analyzedChina's asset price transmission mechanism theoretically and empirically, then putforward feasible advice for the improvement of validity in this mechanism and foradjustment and perfection of the operation mechanism by utilizing the effects ofassets price in monetary transmission policy.The first part is introduction, which mainly focus on the research background,literature review, framework, innovation points and defects. Chapter two elaboratesrelating theory on Asset Price Transmission Mechanism in Monetary Policy. Chapterthree is the empirical part, by using VAR model, cointegration test, Granger CausalityTest, Impulse Response Function and Analysis of Variant, two steps of empirical testson assets price transmission channel of monetary policy were carried out. In accordance with previous part, chapter four raises feasible suggestions to theenhancement of validity in assets price transmission mechanism.What can be drawn from the paper is that there do exist assets price transmissionmechanism. However, this mechanism is not unobstructed enough at this momentbecause the transmission encounters impediments in both stock and real estate market.Therefore, proper measures must be taken to communicate the transmission channel,so as to the effectiveness of assets price transmission mechanism can be heightened. |
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