The Studies To The Impact Of China's Stock Market To Goals Of Monetary Policy

Intermediate target of monetary policy is generally considered to be interest rates and money supply, that is, monetary policy impact economy growth and price stability policy through interest rates and the of money supply, which is the objective of monetary. This mechanism has played an important role in the economy, but there are also some disadvantages:because our country has not fully market-oriented interest rates, changes in interest rates does not reflect changes in the economy, so as the intermediate target of monetary policy, interest rates is not good conduction of economic change; China's major channels of the supply of money banks is the banks, but bank loans have certain business rules, easily lead to large enterprises have sufficient funding but medium-sized company quite shortage. And this mechanism is not conducive to economic development and optimizing the economic structure.In recent years, China's stock market has made great development:stock market capitalization and stock turnover has increased, and the influence on economic development is also growing. In this context, whether the stock market to become one of the intermediate target of monetary policy, to improve the effects of monetary policy has some referential meaning.This article's examination about stock market on the effects of monetary policy objectives, on the relevant literature at home and abroad, in accordance with the relevant economic theory, combined with China's stock market developments and the current implementation of monetary policy. This article analysis of the Granger's causality between the indicators of the stock market development and the indicators of monetary policy objectives; at the same time, this article using cointegration analysis and error correction model analysis from stock market on the effects of monetary policy objectives in the long-term trends and short-term trends; and finally,this article came to the conclusion that the liquidity of stock market inhibitory on economic growth, the scale of stock market on promotes economy growth, stock market cannot be used as the intermediate target of monetary policy for the moment.