Monetary Policy, Stock Market, and Economic Growth—Empirical Analysis of China's Securities Market

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 globally. Based on a summary of the development of China's 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 China's stock market, monetary policy, and economic growth at the current stage. It also explores strategic choices for China's stock market to promote economic growth from an institutional analysis perspective. Empirical results indicate: Information variables in China's stock market do not have a significant effect, and the central bank cannot yet use stock prices as an intermediary target for monetary policy; China's stock market generally has a positive impact on economic growth; although the resource allocation efficiency of China's stock market is relatively low, its institutional innovation effect is conducive to China's economic transformation, and its wealth effect has begun to manifest; the development of China's 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 China's 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, holding high academic value and guiding significance. Starting from the practical realities of the Chinese market, this book examines and analyzes the impact of the stock market on policy and the relationship between the stock market and economic growth as China's securities market has developed to its current stage.