Asset Prices Transmission Effect Of Monetary Policy In China

With the rapid development of China’s capital market, the role of asset prices inmonetary policy transmission in the growing emergence. To improve the effectivenessof monetary policy, we select the asset prices transmission effect of monetary policyas the research object. First, we outlined the concept of the monetary policytransmission mechanism, in accordance with the development context of the monetarypolicy transmission mechanism theory, elaborated the theory of the four transmissionchannels, and then gave a detailed description of stock and house channel conductioneffect; then, we discussed house prices transmission effect of monetary policy throughthe VAR model, found that the house prices transmission channel was not smooth inChina; after that, we used co-integration analysis to verify the bad impact of financialcrisis on stock prices transmission effect of monetary policy in China, and discussedstock prices transmission effect of monetary policy through the SVAR model, foundthat the stock prices transmission channel was not smooth in China, mainly from thepresence of blocking between the stock prices and the real economy; Finally, wesuggest government regulating the development of the real estate industry, controllingthe proportion of foreign capital investment, to strengthen government efforts tocontrol the real estate market to curb fast rising housing prices, strengthening thebalance sheet effect of the bank; improve the capital market structure, standardizeenterprise behavior of the joint-stock reform to improve the role of Tobin’s q effect,promote the stock market impact on the real economy.