China's Monetary Policy Credit Channel Conduction And Empirical Research

The transmission mechanism of monetary policy is to analyze how the monetary policy and its instruments affect the real economy through various financial variables. Theoretically, this is not only a subject in the area of banking and finance but also a main content of monetary economics. China is now in the process of establishing the socialist market economy system, the macro environment and micro environment of the monetary policy are changing .There is great uncertainty in the financial environment and financial structure ,thus more and more concern has been focus on the transmission mechanism of monetary policy .In practice ,monetary policy transmission is the most complicated and realistic problem in the financial adjustment in china ,it is related with macro and micro economic elements and the choice of monetary policy .In recent years, the problems of the slowdown of monetary circulation velocity ,credit tight of commercial bank and financing difficulties of small and medium financial institutions, are related with monetary policy transmission directly or indirectly .Therefore, the study of this topic can help us to understand some realistic problems in the macro economy in china and also can help us to understand the institutional problems that have stalled monetary policy transmission ,hence it can provide the foundation for further strengthening the economic reform..In this thesis I choose the methods of channel-and -effect approach. Generally, there are four channels of monetary policy transmission: credit, interest rate, financial assets price and exchange rate.I focus on the credit channel-and-effect. My research is based on qualitative analysis and instructed by systemic idea. By using quantitative analysis as main research method and relying on modern computer technology, we make a systemic and quantitative research on china's monetary policy in different periods and draw a more objective, accurate, scientific and reasonable conclusion than ever. Therefore, our conclusion is worthy in directing the practice of monetary policy in china.