Research On The Credit Channel Of Monetary Policy In China

Monetary policy is an important means of macroeconomic control, and both the transmit channel and the selection of the intermediate target of the policy make sense as the policy is implemented and has an effect on the the real economy. As the transmit channel is the route that the policy tools have an effect on the intermediate target and achieve the final objective of the policy-makers, the effectiveness of the transmit channel determines the effectiveness of monetary policy. It is the importance of the transmit channel in the control system of monetary policy, the macro-finance theory and monetary policy theory has took transmit channel of monetary policy as an important area of research.Because of the particularity of the system of China, the transmit channel of monetary policy depends more on the credit channel. But in recent years, as the steadily reform and gradually development of the financial system, China has established securities market, reformed of the exchange rate system, promoted the deregulation of interest rate and began to use multi monetary policy tools and various transmit channels to conduct of monetary policy. Therefore, this paper researches the credit channel of monetary policy of China and comparatively analysis of the different transmit channels of monetary policy via qualitative analysis and empirical test, combing with the current financial operating environment, in order to find out the major transmit channel of monetary policy of China and propose policy advices to enhance the effectiveness of monetary policy of China.The main contents of this paper are four parts as bellowed.First part is the elaboration of the background and research meaning of this paper. After reading relevant researches of the conduct of monetary policy, the author has summarized and commented the theory and papers of credit channel home and abroad. According to the different perspectives of monetary policy and mechanism of conduction credit sources and effect, the two sides have both been classified and summarizedThe next part is the summary of the relevant theories of credit channels of monetary policy and introduction of theories of transmission mechanism of monetary policy, laying the foundation of the qualitative analysis and empirical test. Subsequently is based on the part of our economy and the special situation of our monetary policy loans to the existence of a qualitative analysis, through to our different historical stage and conduct of monetary policy development analysis of the channels, according to our special financial the economic environment with the credit for the conduction of theory, the credit of our existence.Then the author has done the empirical test of the transmission of credit channels of monetary policy, the result of which has indicated that the credit sources in our current monetary policy has played an important role. This paper by a unit root inspection and e-g two steps of the two examination methods for our country in 1998, the quarterly financial data is a testament to the test. We can see that the significance of credit channel is much higher than that of interest rate channel, asset price channel and the other channels from the result. It indicates that the credit channel is the major transmission mechanism which has impact on the the real economy of the monetary policy, and this is in accordance of the operation of current economic situation of China.This paper proposed relevant policy advices at the end. This part sticks to the topic and empirical research result and proposed relevant policies to enhance the effectiveness of monetary policy, strengthen the role of credit channel and promote the other transmit channels.