Transmission Mechanism Of Monetary Policy, Capital Market Research

The transmission mechanism of monetary policy refers to the whole process that the components of monetary policy interact after it is issued out. It also includes the various monetary policy tools adopted by National Central Bank to regulate directly or indirectly the reserve of each financing institution and the margin conditions of the financial markets, so as to control the currency supply of whole society and make residents and enterprises adjust their economic behavior continuously, thus to attain new balance of national economy.Along with the undergoing of economic reform in our country, especially the growth and development in capital market, the bilateral flow of funds between banks and the real economy sections has already been extended to the three-way flow among money market, capital market and the real economy sections. Capital market, through property prices, such as bond, foreign exchange, stock and real estate...etc., is playing a more important role in the transmission mechanism of monetary policy. On the other hand, with the extension of conduction chain, it is impossible to avoid reduction in efficiency of monetary policy. Hence, it has been a hot issue to study the transmission mechanism of capital market in our monetary policy. Under this circumstance, it is necessary to do research in the transmission mechanism of capital market in our monetary policy, study the relation of property price and monetary policy, analyze the new challenges that the development of capital market brings to monetary policy, pay attention to the fluctuations of property prices, dredge the transmission mechanism of monetary policy, which will in return contributes to the improvement in efficiency of our monetary policy, achieve the ultimate target of monetary policy, and which will also contributes to guarding against financial risks, support finance stability, promote national...