Research On The Effectiveness Of China's Monetary Policy Transmission Mechanism Under The Background Of Shadow Banking

Since the international financial crisis,the People's Bank of China hastened the pace of reforming its policy framework that has had a tremendous impact on the regulatory effect of China's monetary policy.However,the financial environment in the same period has also undergone tremendous changes,and the development of shadow banking has challenged policy regulation.If the policy tool can not be effectively transmitted to the intermediary target,the monetary policy can not produce the expected effect.Therefore,it is necessary to test the effectiveness of China's monetary policy transmission mechanism in recent years in the context of China's monetary policy framework reform and shadow banking,and to study the efficiency changes of monetary policy transmission mechanism in the same periods.First of all,this paper expounds the transmission mechanism theory of monetary policy and the influence mechanism of shadow banking on monetary policy transmission,and combines the process of interest rate corridor construction to sort out the evolution process of China's monetary policy transmission mechanism.Considering the potential impact of financial innovation based on shadow banking on the transmission of monetary policy,this paper summarizes the concept of China's shadow banking and the evolution path of business model,as well as the influence mechanism of shadow banking on the transmission mechanism of China's monetary policy.Then,according to the theory of monetary policy transmission mechanism,this paper selects variables from two aspects: policy tools and intermediate goals.We also adds China's shadow banking scale variables,and uses the data from 2011 to 2017 to build TVP-VAR models.We do the empirical test of the effectiveness of China's monetary policy.Finally,according to the model regression results,Combining with China's monetary policy control process and financial environment change,we make a analysis of the reasons for the effectiveness of the monetary policy transmission mechanism,and based on this,we proposes policy suggestions that will help China's monetary policy reform.Our research shows that China's monetary policy transmission mechanism is still effective overall,but in terms of specific policy tools,the transmission efficiency of the two traditional policy instruments,compared with 2017,the transmission efficiency of the two traditional policy instruments,the statutory deposit reserve ratio and the loan benchmark interest rate,has been significantly weakened.The interference of the shadow banking on the transmission of the two is mainly weakened by the reverse;Open market operations maintain transmission efficiency in money market interest rates and money supply due to the continuous introduction of new policy instruments,and the transmission to the medium and long-term interest rates has improved,but the transmission to the credit market is still ineffective,and the shadow banking's interference with conduction is partially amplified in the same direction.After sorting out the control process of China's monetary policy and financial market development history since 2011,this article puts forward three policy recommendations: Firstly,continue to enrich the variety of policy tools to prevent abuse of new monetary policy tools.Secondly,strengthen the marketization of interest rates and continue to improve the interest rate corridor and bond market system;Thirdly,objectively understand the role of shadow banking,based on functional regulation Monetary policy framework.