An Empirical Study On The Monetary Transmission Mechanism Of China: Evidence From 1996 To 2005

This paper is an empirical study on the monetary policy transmission mechanism of China, evidence from last decade.First of all, in the part of introduction, I explained the aim and meaning of this research, and pointed the methodology, originality and the shortcoming of this paper. In the chapter 1, there is a summarization of the theories and their applications of the monetary policy transmission mechanism. And the summarization can be divided into two parts, one is about the general theory, and another is about the application for China. In the part of general theory, I summarized the theories with the developing route of macroeconomics and monetary theory. And in the other hand, I summarized their applications for China, emphasizing institutional factors and focused on my main topic more in the empirical other than theoretical sense. This chapter gave the logical foundation and the basic framework to the whole thesis.In the chapter2, I mainly summarized the methodology of empirical study for transmission mechanism of monetary policy. In the part I demonstrated some main methods and tools of the domain of monetary empirical studies, and analyzed the backgrounds of the using of them. Fitting to the main ideas of this paper, I explained why I choose this method other than another one in this study. And this work did the preparation for the third chapter.In the third chapter, I used the VAR and VECM methods to test interest and credit channel respectively of the monetary transmission mechanism of China, using the evidence from 1996 to 2005.Finally I put the policy advices and my conclusions based on the study, and looked forward to my forthcoming research plains.