Monetary policy, stock market and economic growth

Author: Li Zhibin
Publisher:
Publish Date: 2004-06-01
Features: The relationship between monetary policy, the stock market, and economic growth is one of the most cutting-edge and challenging research topics in the global stock market. Based on a summary of the development of the Chinese stock market over the past thirteen years and the latest academic research both domestically and internationally, this book applies new economic theories and modern econometric methods to examine the correlation between the current Chinese stock market, monetary policy, and economic growth. It also explores strategic choices for the Chinese stock market to promote economic growth from the perspective of institutional analysis. Empirical results indicate: the role of information variables in the Chinese stock market is not significant, and the central bank cannot yet use stock prices as an intermediary target for monetary policy; the Chinese stock market generally has a positive impact on economic growth; although the allocation efficiency of resources in the Chinese stock market is relatively low, its institutional innovation effect is beneficial to China's economic transformation, and its wealth effect has begun to emerge; the development of the Chinese stock market will not reduce the savings rate or cause inflation. As an emerging market in a special transition economy, the research findings of this book on the Chinese stock market not only provide inspiration and reference for domestic academic circles, relevant government departments, and the securities industry but also offer a new sample and model for international academic research, making it highly valuable academically and instructive in practice. The relationship between monetary policy, the stock market, and economic growth is one of the most cutting-edge and challenging research topics in the global stock market. Based on a summary of the development of the Chinese stock market over the past thirteen years and the latest academic research both domestically and internationally, this book applies new economic theories and modern econometric methods to examine the correlation between the current Chinese stock market, monetary policy, and economic growth. It also explores strategic choices for the Chinese stock market to promote economic growth from the perspective of institutional analysis. Empirical results indicate: the role of information variables in the Chinese stock market is not significant, and the central bank cannot yet use stock prices as an intermediary target for monetary policy; the Chinese stock market generally has a positive impact on economic growth; although the allocation efficiency of resources in the Chinese stock market is relatively low, its institutional innovation effect is beneficial to China's economic transformation, and its wealth effect has begun to emerge; the development of the Chinese stock market will not reduce the savings rate or cause inflation.