| Monetary transmission mechanism, which involves macroeconomic policies and microeconomic behaviors and affects the policy efficiency, is the essential part of monetary policies. It again is a sophisticated issue facing those market-driving economic states. Among all transmission mechanisms, the interest rate mechanism is the most essential one, and is the basis of other mechanisms. Scholars of different schools are paying intension on the role of interest rate in monetary transmission, while central banks of different countries, especially those well-developed ones, use the interest rate as an important policy tool. As the financial market is gradually marketablized, securitiblized and internationalized, the interest rate plays an even more important role in our economy.Since the beginning of 21st century, great changes have taken place in China's macroeconomic environment, the traditional monetary transmission mechanism has been greatly challenged, and the interest rate has been unprecedentedly recognized. Meanwhile, as the Chinese market-driving economy is developing, the financial market is growing, and especially the interest rate is greatly marketablized, the effect of interest rate transmission will get much more patent and the credit transmission channel will gradually be substituted by the interest rate channel.On the basis of the recognition of different phases, this paper empirically analyzed the inner and outer transmission channels of interest rate in China with modern econometric methods, made the research of monetary transmission much clearer, and offered important proof for the central bank to make monetary policies. |
