Effectiveness Studies Of Credit Transmission Mechanism Of Chinese Monetary Policy During The Deflationary Period

Conduction mechanism of monetary policy is a kind of the transmission channels andthe mechanisms of action that the centre bank impacts on intermediate targets by usingvarious monetary policy tools, and then finally realize the policy objectives established. Inbrief, it is the process from useness of monetary policy to realization of monetary policytargets. Conduction mechanism of monetary policy is whether or not perfect directly affectthe implementation effect of monetary policy and the contribution to economic.During the deflationary period,the central bank has taken a serises of moderatelyloose monetary policy,but the effect of actual implementation is not ideal,the main reasonis the monetary policy transmission mechanism poorly.This paper mainly studies theeffectiveness of credit transmission mechanism of Chinese monetary policy during thedeflationary period. Although there are many transmission channels in China, Chinamonetary policy transmission mechanism is still credit transmission mechanism primarilyat present. First of all,the paper narrates the relevant content about the deflationphenomenon and then introduces various monetary policy transmission mechanism andrelevant research in credit channels transmission mechanism from home and abroad, andexpounds the premise of the credit transmission channel application; Secondly, thecomparative study between rate transmission mechanism and credit channels transmissionmechanism obtained why credit channels is still the main monetary policy transmissionchannel at present in China. Third, in theory, it analyses supply and demand of the credit inthe transmission process of credit channel of the deflationary period, and come to aconclusion that Chinese credit channels transmission mechanism is hindered during thedeflationary period, in other words, Chinese monetary policy credit transmissionmechanism does not play its expected utility during the deflationary period, and thendemonstrate it based on positive method; At last,summarize the blocked reasons of thecredit conduction channels during the deflationary period, make policy recommendationsto perfect credit transmission channel of Chinese monetary policy, and forecast thedevelopment trend of Chinese monetary policy.