Monetary Policy Transmission Mechanism Of Asset Prices In China

In recent20years, several financial crisis have broken out in the world.Behindevery financial crisis, there is the shadow of the asset price volatility, particularly theglobal economic crisis triggered by the USA subprime mortgage crisis which enduranceand strong destructive power is beyond people’s imagination, asset prices and monetarypolicy transmission mechanism become the focus of attention.again. At home, constantlyinflating asset-price bubbles in recent years, especially in real estate prices are soaringand the central bank has used monetary policy tools to control housing prices for manytimes, but not achieve the desired effect, house prices still rising. Based on the abovepoints, we will make the asset price transmission mechanism of monetary policy in ourcountry as the research object of this article: the first is theoretical analysis, and then usethe FAVAR model to make empirical research,finally find rules and adviceIn this paper, the asset price conduction process is divided into two areas: first, theinfluence of monetary policy impact on asset prices;second, asset price fluctuations affectthe real economy. Combined with the actual situation of our country’s economy, theasset price conduction mechanism is divided into stock price transmission mechanismand real estate price conduction mechanism. First two links for carding on the level oftheory, on this basis, using the latest economic data, set up FAVAR model and use theimpulse response of the transmission channels for empirical analysis. The results showedthat the interest rate has more significant effect to the share and house prices, interestrates has an inverse relationship with real estate prices, investment, sales and stock prices,“the riddle of price" is missing; Compared to the real estate market for investment andconsumption,Stock price’s influence on the investment and consumption is more strong.the influence of stock price transmission channels is relatively smooth relative to the realestate price channel; We also find that in the process of empirical analysis, there is significant inverse relationship between house prices and consumption, turning out thereis crowding-out effect rather than wealth effect on the real estate market.