Financial structure and monetary transmission mechanism

Author: Fan Mingtai
Publisher:
Publish Date: 2005-05-01
Features: This book conducts systematic mechanism analysis and empirical research on financial structure and its impact on the monetary transmission mechanism within the framework of general equilibrium portfolio. First, taking the monetary transmission mechanism and its implied financial structure as a, combined with the progress in the national income account and the funds flow account, it explores the theoretical foundation of financial structure and its relationship with the monetary transmission mechanism. On this theoretical basis, by introducing new assets such as indirect securities and analyzing the optimization behavior of various economic entities, it expands the general equilibrium portfolio analysis framework, providing the mathematical mechanisms and sectors where the monetary transmission mechanism becomes increasingly complex in the context of financial structure transformation. Second, based on the funds flow account, it systematically empirically analyzes the trajectory of China's financial structure transformation from aspects such as the speed and sequence of financial instrument development, overall financial correlation ratios, and relative ratios, as well as the development prospects with the United States as a reference. Third, based on the analysis of the monetary policy mechanism during financial structure transformation, it first studies the impact of financial structure transformation on the tool selection of monetary policy, the reaction function, and the interest rate channel of the transmission mechanism at the structural segmentation point, and then examines the relationship between the balance sheet structure of banks and bank credit, as well as the impact of financial structure transformation on the credit channel of the monetary transmission mechanism. By conducting research on the monetary transmission mechanism based on financial structure, it proposes and demonstrates a series of important views with academic value, policy implications, and practical significance.