Study On The Validity Of The Monetary Policy Transmission Channel Through Wealth Effect In Stock Market In Our Country

The stock market is a main part of the modern finance market, interaction relations of stock market and monetary policy is more and more obvious. The undulation of the stock price is not only as the result of the economic activity, but also has important influence to the macroscopic economy . In usual situation, even if Central Bank did not take the stock price as a goal of the monetary policy, if the monetary policy changes, it still could have direct or the indirect adjustment to the stock price, the wealth effect channel is one the transmit channels. Since the 1990s, the rapid development of our capital market which take the stock market as the main body, has changed the monetary policy transmit mechanism. The transmission function of stock market for monetary policy in china is also start to reveal. Along with stock market's consummation and development, the monetary policy transmission channel through the wealth effect in stock market will be more and more important. Therefore, the research on monetary policy transmission channel through the wealth effect in stock market is validity to have the positive practical significance.In the research, the article will put the monetary policy transmission channel through the wealth effect in stock market into two processes: first, the monetary policy tools influence the stock market price; second, the wealth effect caused by the changes of stock price affects the entity economy. Utilizes method which the qualitative analysis and the quantitative analysis unifies, examines the validity of monetary policy transmission channel through the wealth effect in stock market in our country, using the result of practical analysis to point out the reasons why the monetary policy transmission channel through the wealth effect in stock market is not efficient, and further put forward the policy proposal. The full text altogether divides into five parts, main content frame as follows:Part I :Introduced the background and the significance of this study, summarized the domestic and foreign research condition, determined the main content and the method of this paper, finally pointed out the possible contribution and the deficiency.Part II: Elaborated the connotation of the monetary policy transmission channel through the wealth effect in stock market, as well as correlation theory review.