Title :
Empirical Analysis on the Interest Rate Transmission Mechanism in China: 1998-2008
Author :
Long Qiong-hua ; Wu Hai-hua ; Zhang Chen-hong
Author_Institution :
Coll. of Econ., Qingdao Univ., Qingdao, China
Abstract :
Granger causality test, cointegration test, and VAR analysis are used to analyze the interest rate transmission mechanism from 1998 to 2008 in China. The results indicate that money supply plays more important role than both the money-market rate and the lending rate in monetary transmission mechanism, and the interest rate channel is still not the key channel of monetary transmission mechanism. It is necessary to further promote interest marketization reform, and construct effective connecting mechanism between money-market rate and lending rate for enhancing its effectiveness.
Keywords :
economic indicators; stock markets; China; Granger causality test; VAR analysis; cointegration test; empirical analysis; interest rate transmission mechanism; marketization reform; monetary transmission mechanism; money market rate; money supply; Aggregates; Economic indicators; Electric shock; Lead; Macroeconomics; Technological innovation;
Conference_Titel :
Management and Service Science (MASS), 2010 International Conference on
Conference_Location :
Wuhan
Print_ISBN :
978-1-4244-5325-2
Electronic_ISBN :
978-1-4244-5326-9
DOI :
10.1109/ICMSS.2010.5576486
