Research On The Transmission Mechanism Of Open-market Operetions In The Bond Market

The monetary transmission mechanism is the core of monetary policy research,and has always been the research hotspot of scholars at home and abroad.According to the experience of western developed countries,the bond market not only has an important impact on the formulation and implementation of monetary policy,but also plays a key role in the transmission effect of monetary policy.In practice,the central bank carries out the open market operation directly in the bond market,and ultimately acts on the macroeconomic indicators through the market transmission.The bond market is closely linked with the open market operation.In recent years,the bond market in China has developed vigorously and the monetary policy framework is also changing.Therefore,the study of the transmission mechanism of the open market operation through the bond market is of great significance to promote the process of conducting the monetary policy in the bond market,increase the transmission efficiency of the monetary policy,and improve the bond market mechanism to promote the deep development of the bond market.The main problem of this research is how the open market operation transmit through the bond market,whether the transmission process is smooth and can effectively transfer the open market operation to the ultimate goal of macro regulation or not.In view of this problem,this paper first carries out theoretical analysis,reviews the transmission channel of monetary policy and combs the transmission mechanism of the open market operation through the bond market,and clarifies the role of the bond market in the transmission of monetary policy.Then,according to the conduction process,we use the monthly macro data from 2008 to 2017 to establish VAR and VEC models in stages,and use Grainger causality analysis,cointegration analysis,impulse response and variance decomposition to test the transmission effect of each stage.The results show that the first stage of internal conduction is smooth,and open market operation can effectively affect operational objectives and intermediary goals.The second stage of internal conduction is blocked,the bond market can not receive the information of monetary policy;and the effect of external transmission is not good,also the bond market can not achieve the ultimate goal of promoting economic growth and stabilizing prices through consumption and investment.According to the empirical results,it is found that the reason that the open market operation can not smoothly transmit through the bond market is concentrated on the bond market itself.The bond market is the transmission medium of monetary policy,but it does not play a "link-up" role in the transmission process,which causes the whole transmission process to be blocked,and the monetary policy transmission is ineffective.Based on this,the author explores the main problems of the bond market in China,and puts forward some suggestions on these issues in order to improve the transmission efficiency of monetary policy and promote the good development of the bond market.