The Study On Conducting Effects Of National Monetary Policy To Assets Price

Along with the development and perfection of our capital market, asset price channel has been becoming an important channel of monetary policy. Development of capital market is not only related to the demand for money, and the deepening of its development would have a significant impact on the conduction and execution of monetary policy. Based on the differences about the national economic structure, capital market development and the implementation of monetary policy, the degree of response of asset prices on monetary policy will be different in the real level. Real estate prices and stock asset prices are two key asset prices, the relationship between asset prices and monetary has always a hot research topic at home and abroad. Therefore, I give a research on asset price channel of monetary policy and the conduction effect, which have a practical sense to formulation and execution of our monetary policy.Here1select real estate price and stock price as the research object. Meanwhile I select in some certain represent the monetary policy common variables, such as money supply, interest rate, and total credit amount. I mainly have an analysis of the relationship between monetary policy and asset prices. According to the theory such as, Tobin’s theory, the wealth effect theory, and the theory of the balance sheet. I have a specific analysis of the asset price channel of monetary policy. And using the empirical method, have a research on the influence of specific effects, and put forward the policy suggestions. In order to improve China’s capital market and asset price transmission channels, at the same time improve the effectives of monetary policy. On the previous studies, through certain theoretical and empirical analysis, the paper is to explore in China whether apparent about the asset price transmission channels of monetary policy and the reaction of asset prices on monetary policy. In turn, I give a discussion about the reaction of monetary policy on asset prices. The main sections are as follows: The first part is the preface. Firstly I introduce the topics of the background and significance, indicating the necessary study of this topic. Then divided into three sections, making the literature review at home and abroad in three viewpoint, from monetary policy transmission channel existence、stock market and real estate market. At last, I give the brief description of research ideas, and this article features.The second part is the theory about the transmission of monetary policy by asset price. Firstly, I introduce the concepts in which used in the paper, then followed by the traditional monetary policy transmission channels, such as the interest rate channel, credit channel and exchange rate channel theory,making an overview about the above theory and the current conduction conditions. Finally I give a concrete research on the transmission of monetary policy by asset price. From a theoretical perspective, having a clear understanding of the origin including the Tobin’s theory, Modigliani and Friedman, and Brunner and Meltzer’s theory, in line with the common monetary policy instrument, respectively the writer give an analysis of the typical effects of these monetary policy tools using to the asset prices.The third part is the article’s empirical analysis. In the first section, I talk empirical study methods to sort out the problem, and then lead to the main research method, and a brief introduction; such as, Unit Root Test, Granger Causality Test and VAR model, based on the VAR including Impulse Response Function. These theories are providing support to the empirical analysis. In the second section, I describe the data sources, the variable selection, and the handling to the data. In the last section, I get the empirical results.The fourth part is the main conclusions and policy recommendations. Based on the conclusions of the study, we make the corresponding policy recommendations to China’s conditions.