On The Monetary Policy Transmission Mechanism Of ECB

This paper presents a brief historical introduction of the process of the European monetary integration as well as the birth of the ECB in the beginning , which starts with the structure and the characters of ECBS for the purpose of providing the background of whole discuss of the essay .This paper focuses on the ECB 's Monetary Policy Transmission Mechanism via Financial Channel, including the characteristics and the latest change of it .Based on the analysis of the theory of Monetary Transmission Mechanism, this paper points out the prospective problems and salutations to them .Finally, we put forth the policy suggestions on how to improve the efficiency of Monetary Policy Transmission Mechanism via Financial Channel.Chapter one functions as the introduction of the essay, aiming at the significance of the topic, including the brief literature of the theory development and the research frame and structure of this essay. Chapter two aims at the structural study of the European central bank system , specifying the basic feature of its characters in terms of the policy decisive Mechanism in order to build up a good foundation of the whole paper. The third Chapter presents the financial analysis of the Monetary Policy Transmission Mechanism ECB. Based on the western theory of Monetary Transmission Mechanism, we try to make out the elements of affecting the efficiency of Monetary Policy Transmission Mechanism via Financial Channel, and the latest changes of the transmission medium in the Monetary Policy Transmission of ECB. Chapter four, one of the key chapters, is about the empirical analysis of Monetary Policy Transmission Mechanism via Financial Channel, trying to apply the econometric methods to study its timing changes to illustrate the obvious changes of the bang interest rate transmission channel in Euro area.Finally, according to the basis of five-year experience of Monetary Policy Transmission, we point out the difficulties of the Monetary Policy Transmission Mechanism of ECB and possible salutations, and the conclusion of this paper in the last chapter.