Research On Stock Price Transmission Mechanism Of Monetary Policy

Monetary policy is the means of which to achieve a goal, Monetary policy transmission mechanism is a description of the monetary policy transmission process to the real economy, which is the basic factors influencing the effect of monetary policy. The traditional monetary policy transmission channels include: bank lending, capital market prices, currency exchange rate. However. with the rapid development of capital markets,The traditional channel has not fully explain the current monetary policy conduction, and the capital market transmission between monetary policy and the real economy is becoming more and more obvious. Among them, the asset prices in the study of transmission channels, scholars pay more attention to stock market prices. The reason is that with the function of the stock market is growing and becoming more perfect, cash flow is not limited to the banking sector and the real economy between departments, are also extended to between stock market and real economy. The increasingly close relationship between stock market and economy improve the efficiency of the stock market transmitting monetary policy, in this case it is very important to study stock market monetary policy transmission channels.Since the 1990 s, through the development and reform, the stock market has expanded rapidly, the investment and financing, pricing, and other functions gradually perfect. On the other hand, the beginning of 2008, China’s stock market institutional chains were broken. The reform radically break institutional chains, and will improve the policy transmission function of the stock market. In the present stage, therefore, studying the transmission channels, should consider the influence of the reform. This article selects sample interval before and after the reform, on the one hand, can provide reasonable suggestion, which could dredge the stock market transmission channels of monetary policy in our country, strengthen the monetary policy effect; on the other hand, can more accurately reflect the current situation, provide a reasonable reference for the monetary authorities policymaking.First of all, this paper from the aspects of theory, according to the actual situation, the process is divided into two stages. Then, analysis of different proxy variables how to affect the stock market and stock level how to affect investment and consumption level. On this basis, summed up the factors influencing the stock price transmission mechanism of monetary policy. Next by analyzing non-tradable shares how harmful to these factors, aswell as reform how beneficial influence on these factors, to illustrate the impact of reform brings to the shares of monetary policy transmission from the theoretical perspective. Then,select two sample interval, before and after the reform in two stages, to analyze the transmission channels.The empirical results show that: before the reform, interest rate, money supply, the balance of loans of financial institutions and the exchange rate, in addition to the exchange rate can have a certain influence on stock prices, but the effect is not obvious; in the external transmission phase, our country stock market wealth effect and investment effect is very weak. After the reform, though still is the interest rate, money supply, the balance of loans of financial institutions that affect the stock market, the influence degree got improved remarkably; in the external transmission phase, the stock market wealth effect and investment effect before the reform has no obvious change. By comparing the results before and after the reform, Reform effectively dredge the channel of internal conduction phase, and the efficiency of the external transmission phase has not been improved significantly. Then analyses the causes of this situation.On the basis of theoretical and empirical, In this paper, from the angles of monetary market and stock market put forward relevant Suggestions: The money market:(1)Continue to promote the marketization of interest rate, create a favorable environment for the transmission.(2) In the different stages of economy, choose different intermediate targets to improve the effectiveness of monetary policy from the root. The stock market:(1)Adopt measures to promote the stability and prosperity of the stock market.(2) Improve the state of stock market investment income distribution.(3) To promote the further expansion of the stock market.