Study On Impact Of The Firms’ Optimized Investment Behavior On Effectiveness Of The Monetary Policy

As the system of socialism market economy improved step by step and, with thetransition of economic and financial system, the macroeconomic control of ourcountry has almost completed the transformation of indirect control leading fromdirect control leading. Monetary policy has also become one of the main controlmeasures in Chinese macro-control system. From the practical effect of monetarypolicy in recent years, we can conclude that the monetary policy of our central bankhas the phenomenon of the loss or leakage of the efficiency when it conducted.Therefore, it makes monetary policy ineffective. There are many reasons for thisphenomenon, including both macroeconomic environment factors and microeconomicfactors. Among all these factors, the most important one to influence the effect ofmonetary policy is the investment impulse of enterprise.Based on summarizing and developing the existing literature, this paper mainlyuses the theoretical and empirical, qualitative and quantitative research methods. Firstof all, depending on the new western classical investment theory, I have researchedthe optimization of investment decision behavior of enterprise. And the paperanalyses the factors of influencing enterprise investment, including the effect ofmonetary policy changes on enterprise investment and the effect of enterpriseinvestment on output, which is theoretical basis for the next empirical research.Secondly, I describe that if the enterprise investment of our country has an influenceon the effect of monetary policy within the perspective of reality, which concludesimpact mechanism, the present situation of enterprise investment of our country andso on. Next, based on the research conclusion before, I construct the VAR model tohave an empirical research on the relationship between enterprise investment of ourcountry and the effect of monetary policy by introducing six index variables relatingto macro economy and enterprise investment. Through empirical analysis I get aconclusion. Finally combined with the actual operation of our economy, I find outseveral reasons which enterprise investment influences the effect of monetary policy.And I put forward some policy suggestion on how to improve the effectiveness ofmonetary policy, including deepening the reform of state-owned enterprises, andimproving and perfecting the micro basis of the transmission mechanism of monetarypolicy. At the same time, it is necessary to speed up the reform of marketization ofinterest rates, to raise leverage and guidance of interest rates and to improve and consolidate the independence and authority of central bank. And most importantly, weneed to further strengthen the coordination between monetary policy and othermacroeconomic policy.