Impact On Monetary Policy Transmission Of The Change Of Our Monetary And Financial Environment After The Financial Crisis

Monetary and financial environment is the core of a country’s economy. It plays an important role in the macroeconomic regulation and control. Monetary policy must have a corresponding financial environment in order to make it better work. Financial environment, which determines the success or failure of monetary policy regulation, is directly related to the formulation, implementation and feedback of monetary policy. The financial tsunami triggered by the sub loan crisis of USA in2008shocked to the global economy and Chinese was not spared. The domestic financial environment of China dramatically changed by the crisis. It is totally different from the ever. Our monetary policy formulation and implementation are significantly influenced. The monetary policy transmission channels of before may be no longer unblocked. In this case, reanalysis of the transmission effect of monetary policy since the financial crisis is significant for China’s economic sustainable development, according to the changes in the financial environment after the financial crisis.This paper is based on the changes of China’s monetary and financial environment after the financial crisis. Chinese monetary transmission mechanism is deeply studied from theory to practice. The specific work is as follows:First of all, the research background and significance of this paper are introduced. At the same time, the relevant research results of scholars at home and abroad are summarized. Secondly, changes in China’s monetary and financial environment are analyzed. It is developed from three aspects:effects of financial crisis on China’s financial industry, the impact of the financial management system and financial structure. We conclude that the financial management system changes from divided operation to mixed operation, diversified financial assets structure and changes from indirect financing to direct financing. Once again, the effect on China’s monetary policy transmission mechanism by the change of financial environment after financial crisis is analyzed from theory and empirical. In the aspect of theory, the mechanism of two kinds of transmission channels are introduced. And then China’s monetary and financial environment after financial crisis is combined to analyze the effect of two kinds of transmission channel. We conclude that China’s monetary policy transmission channel number decreases gradually, while price transmission channels gradually enhance. In the aspect of empirical, we analyze the impact of monetary policy transmission channels and the number of price transmission channel of the final goal of the monetary policy from the quantitative angle by constructing the state space model. The results show that GDP and the price level are influenced by the number of transmission channels and price transmission channel GDP and the price level. Besides, the number of transmission channels play a major role in regulating at the present stage. But the role of price compared to the number is gradually increasing. Finally, we summarize the whole paper and put forward relevant policy recommendations on the problems in the process of China’s monetary policy regulation.