The analysis of interaction between monetary market and capital market

As two sub-markets of financial market, money market and capital market both focus on currency and provide sites and channels for all financial assets and currencies to communicate with each other. Thus, capital markets and currency markets have a strong linkage. Only by strengthening the linkages between the two and guarantee their mutual development, can we improve the efficiency of the whole financial system. Up to now, the money market and capital market are far from the state of interaction. Therefore, Based on the study of the inner relationship between the two, the operation rules and the influencing factors, it is provided a theoretical basis for their sound development through the comparative analysis method and put forward political suggestions on their coordination in this paper.