Research On Transmission Mechanism Of Monetary Policy Based On Financial Innovation

The change of economic and financial environment will definitely lead to the change of the monetary policy and its transmission mechanism. Under the background of economic transformation and financial reform, it is of great importance to the measure the overall effect of the monetary transition mechanism. Financial innovation can be achieved by corporations and the behaviors and decisions of residents. By measuring the subjective judgment of the corporations and residents influenced by external factors, the author analyzed the effects of their behaviors on the transmission of monetary polices and thereby on entity economies. Make innovation factors by quantitative statistic can be described in quantitative statistics, and comprehensive validation of quantitative statistics in monetary policy decision model can better describe the current most important countries of monetary policy rules. Then the quantitative statistics included in the overall effect of monetary transmission mechanism in the model, to measure the overall effect of monetary policy transmission mechanism. The two process in our country’s economic data verification, can better describe the monetary rules formulated and conduction effect.Based on AS-AD decision model of monetary policy, this paper quantifies the qualitative data in the Household Savings Survey System to investigate the behaviors of the micro subjects. Money supply model is the key foundation of monetary policy, inflation gap is a measure of the money supply main reference variables. Data "household savings survey system," the survey calculated the inflation rate gap, on the one hand reflects the impact of financial innovation and monetary authorities of the money supply decisions. On the other hand, the inflation rate gap time series analysis as a factor into the overall effect of the monetary transmission mechanism VAR model. It reflects the impact of financial innovation and the impact of the monetary policy transmission effect. The expected inflation rate concluded form the system is included in the VAR model, a overall effect model of the monetary transition system. The overall effect of the monetary transition system is analyzed by stability test, co-integration test, Granger test, Variance decomposition and impulse-response function.