A Study On Dynamic Link Between Financial Stability And Price Stability

The financial crisis triggered by the US subprime mortgage crisis sweeping the world,financial market stability once again become the core issue of financial regulation and control,that the price stability can take into account the traditional view of financial stability has been questioned by more and more experts.How to effectively monitor financial market risks and whether financial stability and price stability are consistent is also the key to whether monetary policy can effectively serve the financial market.This paper analyzes the relationship between financial stability and price stability.Financial stability is only one of the factors that affect price stability.Financial stability is only one of the factors that affect price stability.The root of financial instability lies in financial development and real economic situation.The effect of monetary policy on financial stability and price stability will vary with the economic environment.The financial pressure index constructed by financial policy factors shows that the financial pressure level in 2007-2008 exceeds the critical value,which shows that China's financial market is inevitably affected by the international financial environment.China's financial market overall stability is better.On the basis of measuring the financial pressure index of China,this paper constructs the Markov transition model to explore the relationship between financial stability and price stability,and fully takes into account the impact of real estate market investment scale on the relationship between the two,the results show that financial Stability and price stability are not always consistent,the relationship between the two by the size of the financial stability of the impact.On this basis,this paper puts forward some policy suggestions to optimize the financial structure,strengthen the construction of investment channels,strengthen the supervision of the real estate market to guard against the credit risk of the real estate market and play a synergistic role of financial supervision and monetary policy,in order to better prevent systemic Financial risks,and promote financial stability and the steady development of macroeconomic.