Financial Products Innovations And Its Effect On Monetary Policy

Since 1980's, with the rapid development of financial innovation in world, its influence for the economy of countries is huge and profound. The innovation of financial product maximum have raised finance organization and financial market efficiency, market risk has scattered , but at the same time, it has also changed money demand and supply form , influenced the ability that the authorities control the turnover of money and have weakened the validity of monetary policy. After entering 90 decade, America and Japan that financial product innovation is most developed (especially Japan) monetary policy last goal can not realize repeatedly, is just the best evidence of monetary policy validity weaken by financial product innovation. How to remove or weaken financial product innovation puzzle with the validity that maintains monetary policy, it is realistic to have become countries central bank again pressing central program.After the financial product on Chinese genuine meaning is created from reforming and opening up to the outside world, along with market economic system establish and enter step by step the open and competitive pressure that is faced with after lifetime increase become active day by day. And the behavior of resident, enterprise, and commercial bank as well as other various financial organizations also along with entire financial system market melt reform move forward to occur significant change, in the course that monetary policy validity creates in financial product, the tendency that had been weakened continuously shows increasingly. Understand its theoretical background and the culvert justice of financial product innovation further , analyze its inner cause, for the assurance of our country it for macro-economics especially monetary policy the influence of enforcement as well as how to weaken it for policy validity disturb have very important and realistic meaning.Domestic and international in financial innovation the theoretical research of related field already many, but according to the system of financial product innovation, research does not be seen , is for it the thorough with monetary policy relation discuss is more to lack, this paper tries as financial product innovation carries out all-sided thorough analysis, and establishes one on this foundation to explain that financial product innovation affects the systematic theoretical frame of monetary policy , is probed under financial product innovation condition, the monetary policy of our country whether the still effective option for monetary policy intermediary goal. This paper is taking this as purpose and attempts to carry out research along following train of thought:First for the key concept -- finance that this paper will study , the intension of product innovation is limited , is looked back and combed for its theoretical background and domestic and international research present situation; On this foundation analyze financial product innovation produce move because of, and for the innovation type finance since the reforming and opening up to the outside world of our country, product is made statistics of and arranged , sum up the characteristic of the financial product innovation of our country;In the economic analysis for financial product innovation have shown financial product innovation for the function that develops financial system most important. In the environment of market trade investigate financial product, their efficiency that can promote market to trade reduces the trade risk of product market, so, enhance market economic disposition resource efficiency, have realized the Pareto improvement of resource disposition;Currency is let to beg problem to be the key content of currency financial theory always, is also the starting point of a monetary policy option of home made goods. This paper starts with from analysis financial product innovation for the influence of currency supply and currency demand, have elaborated its influence for the mechanism of monetary policy intermediate index and monetary policy conduct further mechanism. And on this foundation, reach conclusion: The ability that makes the financial control currency of the authorities reduces financial product innovation greatly, have weakened the validity of monetary policy;Since the target of China monetary policy is to keep price level stable and promote economic growth, this article takes advantage of many econometrics such as cointegration test, granger causality, vector autoregression and impulse response function to focus on the positive research on the financial product innovation to monetary policy intermediate target selection, monetary policy transmission mechanism and monetary policy effectiveness in terms of six variable: financial product innovation, money supply M1 and M2,financial institution credit remainder, consumption price index, gross domestic prodution , which can provide some helpful foundation and suggestion for our central bank to select effective monetary policy intermediate target selection and transmission mechanism ,to improve our monetary policy effectiveness;From above theoretical analysis and really certificate analysis reach the current stage of our country still adopt currency supply quantity certainty and the reasonability of M1 monetary policy intermediary goal, do preparation for the validity that how to maintain monetary policy under financial product innovation condition and to take off the adjustment of stage monetary policy intermediary goal to offer policy suggestion.This paper has greater characteristic and innovation in the aspect of studying content, method and socioeconomic value:(1) The conclusion owned by this paper establish on the overall systems analysis for financial product innovation, on biggest level, avoid since theoretical foundation or visual angle not brings unilateral effect together.(2) Domestic and international most related researches is the relation between financial innovation and monetary policy spread out , and financial innovation cover fairly extensively, very rare will financial product innovation analyze alone, this paper is just and has filled , is this and blank , this has very strong application and reference value for the behavior of entire financial system every main part and the establishment of country for monetary policy.(3) The analysis with more overall paper have discussed the financial influence of product innovation for monetary policy, test the dependency relation between various monetary policy variable and financial product with econometric method, prove the validity of monetary policy with demonstration the current stage of our country in financial product innovation condition, and have confirmed the intermediary goal of monetary policy.(4) With foreign now have had for the market research of developed countries difference is , this paper puts focal point under the domestic background of such a burgeoning market , this will offer a special system and social and economic environment to study , there is larger meaning to use for reference for the monetary policy of our country.