Effectiveness Of Interest Rate On Chinese Monetary Policy Transmission Mechanism

Currency policy to achieve the intent of the government is to overcome the blindness of the market economy has brought economic instability and play "automatic stabilizers" function,control monetary policy intermediate target of monetary policy transmission mechanism,to comply the final intent of the process.If the passive influence of the monetary climacteric on Chinese economy become alleviate gradually,however it is hard to maintain a counterpoise in the monetary and price stability guarantee,in which case interest rates play an important role.The article first examination the notion of interest rate and transmission mechanism,then introduce the premise of interest rate transmission mechanism and the effectiveness of currency policy including the definition and characteristics of Chinese monetary policy.Introduce the Western interest rates and transmission mechanism theory,analysis the influence on conduction mechanism below the interest rate market and non-market.Then in the research of empirical the article use the VAR model to analysis inside and outside mechanism,the model use the broad money supply M2,Shibor,and the three-year loan rate of inside mechanism and use capital market price transmission mechanism analysis and error correction;in the external transmission mechanism,study the credit market,capital market interest rates and the ultimate goal of social resources conduction.Via cointegration insepect,impulse response and variance decomposition research to consider the output and price for the reaction of credit markets and capital market impact,to learn more about the extent of the effectiveness of the external transmission mechanism.By the theorical and empirical study explains that the inside transmission mechanism on Chinese money market interest rates to effectively guide the changes in credit market,currency offer,currency market rates conduction weakly efficient,explain credit market dynamics on the capital market is stronger than the moneymarket.External transmission mechanism in the credit market conduction effect on prices strong and effective,weak investment and import and export effectively.Capital markets for investment and consumption and export strong and effective conduction effect of weak prices conduction effective,long-term effect on the total output conduction downward trend.This display that the influence on rates to monetary policy transmission mechanism of the present general weakly effective.Article that interest rates weaken the effectiveness of the presence of two-track interest rate conduction mechanism distorts the variable interest rates on the economic impaction of the mechanism;household savings rate sensitivity of consumption is not sensitive to corporate investment behavior is not sensitive to fluctuations in interest rates,financial markets started late,investment system isn’t complete and credit-based transmission restricted the role of interest rates.According to the result of the empirical,the establishment of savings and consumption into investment mechanisms,development of the bill market,from business,government,and many financial institutions and securities investment and financing mechanism to improve institutional and regulatory systems,enhance the effectiveness of rate to transmission mechanism by innovation currency policy instruments to steady the datum interest rate,interest rate market to enhance multi-dimensional effect and so on.