Research On The Impact Of China's Shadow Banking On The Effectiveness Of Monetary Policy

Effective monetary policy is the important guarantee of country's economy actively developing and financial stability.The scale of China's shadow banking system is growing and the construction is complicating day by day.However,the shadow banking has function of creating credit that similar to commercial bank,but highly free from the government regulation,this will affect the original bank system and overall economic environment of our country,it will make a difference to the implement and regulate effect of our country monetary policy.Based on the analysis of the relevant literature both at home and abroad.,gradually analyzes the mechanism of the affect that China's shadow banking system make to effectiveness of monetary policy,it has the function of credit creation that will expand the money supply and has the impact on the monetary policy's interest rate and credit transmission mechanism.And builds a CC-LM model contained shadow banking factor on behalf of the mutual balance of credit market,product market and money market,deeply analyzes the influence that shadow banking make to the effect of monetary policy transmission and implementation.Then,based on the macroeconomic monthly data from January 2007 to December 2016,builds three groups of SVAR model that before and after the introduction of the shadow banking factors,has an empirical study on this issue.And contrasts the total influences that the shadow banking make to the transmission and implementation effectiveness of different monetary policies.Through theoretical analysis and empirical research,finally has three main conclusions:(1)China's shadow banking will weaken the efficiency of monetary policy interest rates and credit transmission,interfere the monetary policy transmission to be completed effectively,which affect the ultimate goal of monetary policy to be implemented;(2)the shadow Banking will affect the implementing effect of monetary policy in our country,include the monetary policy intermediary goal and final goal,specifically,the credit creation of shadow banking increases the money supply,shadow banking expands the total output of society,but it causes economic fluctuations,pushed up price levels and interest rates,what's more,has complementary and alternative effect on the traditional credit business of commercial bank:(3)China's shadow banking has unsymmetrical impacts on the transmission and implementation of tight and expansionary monetary policy:although it has weakened this two kinds of monetary policy transmission,The effect on the implementation of the two monetary policy is different:the former is a certain degree of inhibition effect,and the latter is lagging behind expansion role.Finally,according to the conclusions,combined with the development of the shadow banking and the improvement of the monetary policy system,puts forward suggestions.