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Study on the Effectiveness of Monetary Policy Transmission Mechanism

Jialing Kong, Xinlei Shi

Abstract


Monetary policy transmission mechanism is an important way for the central bank to control the economic goals by regulating the
money supply and interest rate. This paper studies the effectiveness of the transmission mechanism of monetary policy and analyzes its main
transmission path. At the same time, the factors affecting the effectiveness of the transmission mechanism are discussed, and finally, the suggestions for improving the transmission efficiency of monetary policy are put forward, so as to provide reference for policy makers.

Keywords


Monetary policy; Transmission mechanism; Interest rate channel; Credit channel; Asset price channel; Tobin Q theory

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References


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DOI: http://dx.doi.org/10.70711/frim.v2i8.5164

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