A Study On Dual-Track Transmission Mechanism Of Interest Rate Of Monetary Policy In China

Monetary policy research is an abundant field for academic study, and in the core subject of this field the transmission mechanism of monetary policy is the key, because the fundamental function of monetary policy is that the government are well equipped to correct the disadvantages of the blindness and hysteresis of the market economy, which can brought about the economic overheating or economic recession, and whether the transmission mechanism is effective or not can directly determine the success or failure of the government macroeconomic regulation over its own economy.Plus,whether some nation’s economy can avoid a cyclical large economic fluctuation depends on how well the mechanism goes on. In all kinds of transmission mechanism of monetary policy, interest rate transmission mechanism is the core, and there are many studies revealing that whether the other transmission channels can work effectively basically relies on the effectiveness of interest rate channel, this is like the relationship between tree trunks and branches, the interest rate transmission mechanism is a trunk while the other channels are only branches related. Because the interest rate transmission channel occupied such a pivotal position, it is directly determined to a mature market economy’s the effectiveness of monetary policy, so figuring out the path and logic of the monetary policy transmission mechanism became the primary subject of this study. In short, the interest rate transmission mechanism of monetary policy is a conduction logic, such as the central bank based on the real operation condition of the macroeconomic, put forward the corresponding macroeconomic adjustment measures, including adjusting direction and amplitude of macroeconomic indicators, take the gripper of the three monetary policy tools, to influence short-term market interest rates, mainly in the money market benchmark interest rate system, and then passed on to the long-term stock market short-term market, resulting in several major changes in the macroeconomic variables, so as to achieve the purpose of adjusting the national economic.To establish the interest rate transmission mechanism as the basic role of monetary policy transmission mechanism research has its technical reasons and the background of the time. In technical aspect, since the reform and open policy, our country gradually set up a monitoring system of monetary policy, but until the ninety’s, the central bank relied mainly on quantitative money supply to monitor macroeconomic. Along with our country’s further market economy development, the study found that for quantitative intermediary goal of statistics and monitoring is becoming more and more difficult, and the money supply and the relationship between the main macroeconomic variables has been is more and more not obvious, this has forced the monetary authorities to give up overdependence on money supply, only to find a more reasonable monetary policy intermediate target, it has long been the major western economies are high price of intermediary target variable interest rates will be favored gradually. At the same time, from the point of the era background of the development of global economy, financial integration over the global economy, regional trade liberalization, against the background of interest rates as the market is an important factor of capital price information between the virtual economy and real economy, whether the interest rate transmission channels open to the benign operation of the whole macro economy.From the perspective of the market economy development process of China’s reality, the21st century, the macro economic environment after the profound changes in our country, especially in the third plenary session of the18stressed that we need to deepen the reform of economic system, put forward the market play a role of "basic" resource allocation, and into the market play a role of "decisive" resource allocation, it further shows that China’s economic system reform, is "deep" into the market. In this context, as in monetary market, capital market and product market, such as play to the "guidance" far-reaching influence on the benchmark interest rate, naturally the further market-oriented reform is an important core question of China’s reform and opening up further. Therefore, depends on the market-based reform of interest rates for the release system of "dividend" the monetary policy transmission channels, interest rates are more and more attention by academic circles and in business, the improvement of its status is the necessity of logic. Is based on the above all sorts of technology, international and domestic reality, academic circles pay big strength to various research interest rate transmission mechanism of monetary policy, not only has high theoretical significance, and it also clarify the macro economic operation of the practical significance of the various financial mechanism, which helps to find and realistic problems in the implementation of the monetary’policy system, ultimately for the deepening of financial system reform to provide important theoretical and practical support.