Dissertation > Excellent graduate degree dissertation topics show

Study on Micro-Mechanism and Effet of Credit Channel of Monetary Policy Transmission

Author: FangXianCang
Tutor: HuangZeMin
School: East China Normal University
Course: World economy
Keywords: Credit channels China 's monetary policy Microscopic mechanism Credit Transmission Mechanism Interest rate channel Credit transmission mechanism Credit rationing Interest rate elasticity Willingness and ability to Marginal propensity to consume
CLC: F822.0
Type: PhD thesis
Year: 2003
Downloads: 985
Quote: 7
Read: Download Dissertation

Abstract

With the development of the reform and opening up as well as our national economy, monetary policy plays a more and more important role in China’s economy. However, it’s not effective enough on some occasions. Banklending channel-Either through the central bank direct control over credit size or through it’s indirect controlon commercial banks (mostly state-owned bank) realizing the policy transmitting-becomes the major channelfor long. But in the transforming economic system and financial market, due to so many factors of macro environment and micro basement, monetary policy conduction through bank’s credit channel has been distorted.Thus the main task of this paper is to study the micro mechanism of the monetary policy transmitting and its effect weakening by discussing the behavior of consumption and enterprise’s investment, the nature of bank and financial market, deflation, opening-up, justice and sustainable development. The topic of this paper and its study have theoretical and practical significance for the authority to formulate economic policy and reform rules.The main content of each chapter is as follows:Chapter 1 with 5 sections describes both theory and model on the credit transmission mechanism of monetary policy. Section!.1 looks back upon the interest transmission mechanism and the conditions on which this mechanism exert its effect. Then section 1.2 explains that monetary policy has more obvious effect via credit channel rather than traditional interest channel. Section 1.3 gives detailed analysis on the model, content and precondition of credit transmission mechanism of monetary policy as well as similarities and differences between credit transmission mechanism and interest transmission mechanism. Bank lending channel has more obvious influence on the actual output than traditional interest channel. In this section, I fully analyze various forms of balance-sheet channels. Section 1.4 researches major elements which influence credit transmission mechanism of monetary policy, including the influence of the central bank on the loan supply, the substitution between loans and other financial capital, the willingness and the abilities of loan demand, etc. It is possible that the existence of all above mentioned elements will obstruct the credit transmission channel and reduce its effects. Section 1.5 sets up a model on bank’s lending behaviors, enterprises’ investing & borrowing behaviors and consumption behavior.In Chapter!, I mainly analyze the relationship between consumption behavior and credit channel of monetary policy with 4 sections. Section 2.1 points out that the relationship between residents’ consumption and their current income is relatively reduced. In section 2.2, I mainly focus on the insufficiency of domestic demands resulted from the difference between income effect and substitution affect of the interest-rate reduction policy. Section 2.3 mainly analyzes the eight factors that effect the consumption and monetary policy, such as the character of dual-structure of the consumption and incomes, and so on. Section 2.4 studies the reasons why about our expansionary credit policy on consumption wouldn’t have an obvious effect, wherever in the aspect of banks’ supply of credit, or the families’ demand of credit.In chapter 3. I research into the relationship between enterprises’ behavior and the credit transmission mechanism of monetary policy. Section 3.1 is based on the history of Chinese planned economy and transforming economy, with an conclusion that the large amount of debt of enterprises will restrain the effect of the monetary policy. Section 3.2 makes a further analysis about how enterprise’s high debt and the expanding credit demand are formed. Section 3.3 demonstrates in theory that, after 1998, under the situation of expected deflation, when the enterprise’s expected return of practical investment is lower compared with the return of security investment, thecredit transmission mechanism of expansionary monetary policy will not be effective. Sectio

Related Dissertations

CLC: > Economic > Fiscal, monetary > Currency > China's currency > Principle of policy and its elaborate
© 2012 www.DissertationTopic.Net Mobile