A Study On The Interest Rate Transmission Mechanism Of Monetary Policy In China

In recent years,the high cost of financing of many enterprises in China has hindered the long-term development of social economy.The central bank cut interest rates down many times,hoping to make corporate financing costs down,but with little success.On December 24,2015,the Chinese central bank took "double down"measures once again,at the same time the interest rate market-oriented reforms also came to a close,but the financing problem is still not alleviated.This shows that Chinese monetary policy interest rate transmission mechanism is in the part of the block.Therefore,this paper chooses the current society as the object of this study,to sort out and put empirical research on our interest rate transmission mechanism.At present,the market-oriented interest rate reform that China has experienced almost 20 years has been basically completed,and combining the interest rate transmission mechanism becomes a much-needed task.At present many researchers at home and abroad on China's interest rate transmission mechanism are concentrated in two parts.Part of the focus is on the central bank monetary policy instruments on the conduction of the benchmark interest rate.Another part is to ignore the transmission mechanism of the intermediate links,the focus of the study is directly on the benchmark interest rate's change on the real economy and impact on various macroeconomic indicators.There are few studies on the intermediate links of interest rate transmission mechanism.However,in the case where the interest rate marketization has been completed,the examination of the transmission effect of the intermediate links of the transmission mechanism is very important for its future perfection and development.In this paper,I choose the intermediate link of the interest rate transmission mechanism as the research object,mainly choose two financial sub-markets as the research object-the money market and the capital market.In the process of testing,I use the stationary test,VAR model,impulse response function,variance decomposition and Granger causality test to verify the rigidity and reliability of the results.The results show that the statutory deposit reserve ratio as Shibor 's Granger cause is accepted,indicating that the statutory deposit reserve ratio has a good role in guiding Shibor.Shibor's impact on the inter-bank bond market is also very smooth,but the Shibor's impact on the stock market is in the block.Today,the interest rate market-oriented reform has been basically completed,and the central bank's most urgent task is to develop and improve the interest rate transmission mechanism,so the article is meaningful,and I expressed my views and suggestions in the end.