The Analysis of Effect and Result on Conducting the Monetary Policy Transmission Mechanism from the Stock Price Fluctuations

Implementation of monetary policy may lead to the changes of relative stock prices and affect the consuming and investment behaviors of participants in stock market. Continuous expansion of the scale at Chinese stock market not only puts pressure on price and economic stability, but also has an impact on choosing and conducting of monetary policy. The stock market which becomes an important channel of monetary policy transmission has played the increasingly prominent role of it. The Analysis of mechanism and efficiency on conducting the monetary policy from stock prices is of great significance for improving the adjustment of Chinese monetary policy.