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

Author: Li Zhibin, Liu Jian
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 findings both domestically and internationally, this book employs new economic theories and modern econometric methods to examine the correlation between China's stock market, monetary policy, and economic growth in the current stage. It also explores strategic choices for China's stock market to promote economic growth from the perspective of institutional analysis. Empirical results indicate: Information variables in China's stock market do not play a significant role, 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 not high, its institutional innovation effects are conducive to China's economic transformation, and its wealth effect has begun to manifest; the development of China's stock market does not reduce the savings rate or cause inflation. As an emerging market in a special transition economy, the research findings on China's stock market in this book not only provide inspiration and reference for domestic academic circles, relevant government departments, and the securities industry but also offer a new sample and example for international academic research, making it highly valuable academically and instructive in practice. Starting from the actual conditions of the Chinese market, this book studies 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.