Research About The Impact Of Shadow Banking On The Effectiveness Of Monetary Policy In China

Since the financial crisis in 2008,shadow banking has been gradually known by people as the chief culprit.For China's financial market,shadow banking has developed rapidly in recent years,and has influenced the effectiveness of China's monetary policies.All sectors of society need to look out the dangerousness and risk it has brought.With the rapid development of China's economy,the influence of China's financial market on that of the whole world has also increased,and the scale of China's shadow banking also attracts extensive attention worldwide.To study the influence of shadow banking on the effectiveness of China's monetary policies can help us know more accurately about shadow banking and monetary policies in China's current financial market,find out the drawbacks of monetary policies and further optimize their formulation and implementation.The paper at first provides an overview of the instruments,intermediate targets,transmission mechanism and final targets of China's monetary policies,and then on this basis,analyzes theoretically the influence of shadow banking on all aspects of monetary policies.The analysis results show the possibilities of this kind of influence.In order to verify the conclusion of the theoretical analysis,the paper selects all kinds of representative data from January 2012 to March 2016.After the stationary test and cointegration test,a vector autoregressive model has been established to carry out the empirical analysis.The analysis results show that shadow banking has different levels of influence on the instruments,intermediate targets and final targets of monetary policies,which will definitely leads to effectiveness decrease of monetary policies.Finally,based on the theoretical analysis and empirical analysis results of shadow banking's influence on the effectiveness of monetary policies,the paper proposes some measures andsuggestions to regulate the development of the shadow banking system in China,strengthen China's supervision towards shadow banking and improve China's monetary policies.