Monetary Policy Transmission Mechanism Theory

Author: Zeng Xianjiu
Publisher:
Publish Date: 2004-06-01
Features: The study of the transmission mechanism of monetary policy examines the entire process by which changes in monetary policy are transmitted through certain channels or variables to induce real economic fluctuations. This process involves two long-standing controversies: whether money or monetary policy can affect the real economy, and if so, what paths this influence depends on. The book starts from the premise of the non-neutrality of monetary policy and adopts a combination of theoretical and empirical approaches to discuss the transmission mechanisms of interest rate channels, credit supply channels, asset price channels, and exchange rate channels in conveying policy intentions and affecting the real economy. Based on this, the book specifically argues for the possibility of constructing four transmission mechanisms in China. Furthermore, by combining international experience and China's practical practices, it designs a comprehensive model of China's monetary policy transmission mechanism with multiple channel coupling, fully demonstrating the author's unique insights into the aforementioned issues.