Analysis Of The Impact Of Monetary Policy On Interest Rate In The Process Of Interest Rate Marketization

As China's economy enters the "new normal",the multiple structural imbalances in the economy have increasingly become the constraints of economic development.Facing the new situation of multiple contradictions in the economy,the original monetary policy tools are difficult to effectively resolve these problems,and the central bank is urgently required to innovate monetary policy tools to achieve monetary policy transformation.As China's financial market continues to improve,the original money supply as an intermediate indicator of monetary policy gradually deviates from the actual economic situation,and the effectiveness of its macro-control is gradually decreasing.In order to optimize the macro-control mode,the 13 th Five-Year Plan outlines that the central bank should promote the change of monetary policy from “quantity type” to “price type” and strengthen the role of interest rate in the monetary policy transmission mechanism.Based on the perspective of China's monetary policy transition,this paper studies the relationship between monetary policy shocks and interest rates in the context of the continuous advancement of interest rate marketization,thus providing a reference for the central bank to formulate more reasonable monetary policy.This paper tests the cointegration relationship of long-term and short-term interest rates and the impact of monetary policy changes on interest rates through empirical analysis.On the one hand,through the empirical results of the co-integration test of the single equation model,we find that there is a cointegration relationship between China's long-term and short-term interest rates.On the other hand,through the use of vector autoregressive(VAR)model to empirically study the impact of China's monetary policy on long-term and short-term interest rates,we find that changes in monetary policy will have an impact on long-term and short-term interest rates.Short-term interest rates are more sensitive to changes in monetary policy.Long-term interest rates are relatively lagging behind by monetarypolicy.With the level of China's economic marketization and the level of interest rate liberalization,the interest rate transmission of monetary policy will be more smooth.