Nonlinear Character Study On China’s Monetary Policy Transmission Mechanism

Monetary policy is one of the main means of the government regulating macro economic. In the 1980 s in China began to implement monetary policy, monetary policy in macroeconomic regulation and control in our country will become a big presence. Monetary authorities in recent years, most scholars study of monetary policy are very interested in all of the effective implementation of monetary policy is expected. Only master appeared in the process of monetary policy conduction characteristics and laws, to achieve the effectiveness of monetary policy.Macroeconomic is always to give us all kinds of complicated problems.Monetary policy conduction mechanism in the regulation of such complex economic situation, with nonlinear? And how the nonlinear characteristics? Such problems is of great significance to policy makers. In the early 1960 s, there have been scholars by using nonlinear science to explain the economic problem, and until today is still very thin. In numerous nonlinear theory model, the STR model for a set of operational set inspection process, and can be applied in all kinds of macroeconomic issues and get the favour of many scholars.In this article, through an overview of the western classical theory of monetary policy conduction mechanism, and combined with the actual economic situation in China, the monetary policy conduction mechanism in our country is divided into from monetary conduction way to consider and consider two conduction mechanism from credit pathways. And through the establishment of STR model, introducing the impulse response function, respectively, to explore the two ways of the nonlinear characteristics of the monetary policy conduction mechanism. The empirical results show that:(1) nonlinear characteristics existing in Chinese monetary policy conduction mechanism, monetary channel and credit channel is an important contribution to our country monetary policy conduction. Growth of our country’s intermediary goal in different cases, will make the monetary policy conduction have different correlation between the growth rate is low, monetary policy conduction performance, high growth rate, monetary policy conduction showed nonlinear relation, and the monetary channel than credit channels are more prone to nonlinear relationship.(2) of the people’s bank of China is very sensitive to macroeconomic development dynamic, able to in a short period of time to implement the necessary monetary policy to promote or inhibit economic growth, and compared with credit channels, more inclined to take monetary way by the people’s bank of China monetarypolicy adjustment.(3) the monetary policy conduction monetary channel and credit channel were eventually able to develop in the direction of the same as the policy target, and has a certain time lag, in particular, the time lag of credit channel is higher than the monetary channel time lag.based on the analysis of the empirical results, this paper then think that our country must attach importance to monetary channel and credit channel monetary policy at the same time, And, using monetary channel is also need to consider the credit policy, We suggested that the central bank in the macro-economic control and regulation, establish is given priority to with monetary, credit control and auxiliary system of monetary policy.