| Monetary policy are controlled by central bank to achieve specific economic goals,which mainly contains credit policy, interest rate policy and currency policy. As one of the tools to regulate and control macro economy by government,monetary policy is worthy of discuss among economics. While the hot topic is whether monetary policy is effective,it is quite important to analysis the transmission mechanism of monetary policy, namely how monetary policy effect the development of our economy. Only this is clear, we can be more clear about the choice of policy tools and intermediary goals how to achieve the effect of monetary policy.There has been debates about transmission mechanism of monetary policy for a long time. Generally speaking, Theories of monetary policy transmission mechanism can be roughly divided into two groups:"monetary channel" and "credit channels". For the first one, it mainly focus on how government adjust interest rates or the money supply which may be inappropriate caused by enterprises and residents’ assets. It can help to adjust the output and aggregate demand over the market. For the second one, it refers that monetary policy can change the loans of commercial banks and other financial intermediaries to impact he national income without causing the change interest rates sharply.This paper mainly introduces research of the domestic and foreign scholars on monetary policy transmission mechanism, emphatically from the monetary policy transmission way and the role of commercial banks in monetary policy transmission of literature, which was summarized the two aspects.This paper briefly expounds the study of domestic scholars on the empirical study of monetary policy,and choses empirical variables and empirical methods based on existing researches and,the purpose of this study。The empirical part of this article is divided into two parts;Based on the improvement of the multi-level capital market in our country, the increasing of the direct financing tools,the first part mainly focuses on the analysis of the main channel of monetary policy transmission in China. The author established a vector autoregressive (VAR) model to compare and analysis the change of china’s monetary policy transmission channel from period2002-2007to period2008-2013.In the second part, it mainly analyze the reason why the credit channel function does not work so fine. Thus the conduction of the credit transmission process is divided into two phases. in the first stage, the bank of central government monetary policy changes can affect loans of financial institutions; while in the second stage, changes of financial institutions credit would affect investment and consumption. This paper would give a through investigation about the two stages.This paper also discusses the reasons. it is considered that the financial innovation of commercial Banks,way of resource allocation of commercial bank and the effectiveness intermediary goal led to the credit channel role of relative decline. What’s more, the decline in controlling money supply of central bank and descent of credit correlation with money supply has drawbacks that money supply as intermediate target now is working as fine as before.In the end, this paper also gives some suggestions how to address this problem. Firstly,it is quite important to strengthen the regulation of multi-sectoral collaboration and regulate the behavior of the financial innovation of commercial Banks.The emergence of shadow banking in our country, in large part, is the result of failure of the marketization of interest rate. Thus the acceleration of the process of marketization of interest rate is help the shadow banking to operation more transparent. Based on the specific macro economic environment, the intermediate:arget of monetary policy should be improved and optimized to improve the flexibility of the open market. In the long run, of course, our country’s monetary operation should pay more attention to the role of interest rates. |
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