Research On The Interaction Between China's Monetary Policy And Stock Price Changes After The Subprime Crisis

In 2007,the subprime mortgage crisis broke out in the United States,which caused the price of financial assets related to subprime loans to fall sharply,and brought the global stock market turbulence and liquidity crisis.Alan Greenspan,then chairman of the federal reserve,believed that the stock market could optimize the allocation of resources on its own and there was no need to strengthen financial supervision of financial institutions.Whether it is monetary policy or traditional financial regulation,it is precisely because of the neglect of the stock market may cause systemic risk,has caused such a huge loss.In fact,monetary policy will directly affect the issuance of money and the supply of funds in the stock market through a certain transmission mechanism,thus affecting the stock price and the operation of the real economy.The ups and downs of the stock market can also prompt a country to adjust its monetary policy accordingly.Taking China as an example,the stock market,as an important bridge connecting monetary policy and real economy,is playing an increasingly important role.The study of the relationship between stock market price volatility and monetary policy transmission is of great significance for increasing the effectiveness of monetary policy implementation and realizing financial services for the real economy.This paper introduces the theoretical basis of monetary policy and stock price and the implementation of monetary policy and stock market fluctuation in China in the past decade.This paper analyzes the impact of stock price volatility on monetary policy transmission,the impact of monetary policy on stock price,and the impact of monetary policy on stock price on macro economy.Secondly,the relationship between the monetary policy formulated by the central bank of China and the stock price is empirically analyzed with the SVAR model.The results show that: In the short term,the change of interest rate in monetary policy tools has a positive relationship with the stock market and has a great influence.The stock market immediately responds to the money supply shock;The change of stock price will change the liquidity of money supply in a short time.Both monetary policy tools can play the role of intermediary target of monetary policy.The stock market has not acted as a bridge between the monetary policy and the real economy.In short,there is an interactive relationship between the stock market and monetary policy.