| With the growth of capital market,the role it plays as an agent in the transmission mechanism of monetary policy is becoming more significant. The relationship between monetary policy and capital markets has become a hot spot in theory. Based on the western classical theory,such as interest rates and credit, the scholar even pay more attention to our monetary policy in our country's capital market reasonable and effective conduct of research.ADF unit root test, OLS regression equation, cointegration test and Granger causality test methods are applied in analizing the mechanism in China. On the basis of sample data during year 1994 and 2008, my paper gives emphasis on examining the monetary policy transmission mechanism of capital market in China. The empirical research in this study covers two aspects:1.The transmission from monetary policy to capital markets analyze the effective of the money supply,interest and asset prices;2.The transmission from capital markets to the targets of monetary policies analyze the effective of asset price,wealth effect and investment effect.The result shows that our monetary policy of capital market has not significantly.The empirical research indicats following results:1.Money supply Mo, M1, and M2 well explain the changes of asset prices in capital market. There are long-term balanced relationships among money supply and assets prices.2.Changes in interest rates are negatively related to asset prices.3.Assets prices in capital market do not have significant impacts on residual consumption and corporate investment. OLS regression equation shows that, while residual consumptions mainly depends on disposable income, corporate investment depends on the supply of bank loans.As a whole, Chinese capital market doesn't have significant in acting as a tiansmission mechanism of monetary policies in China. Based on these results, the paper puts forwards some proposals in policy-making,such as the capital market mechanism,the commercial interest. |
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