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On Monetary Policy Based on Monetary Assets Prices

WU De-jin

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Abstract

With the development of sign economy,which takes financing as the core, the monetary policy transmission mechanism varies a lot. Here is a question : wether monetary policy should adjust the general price index including monetary assets prices.The analysis indicates that monetary policy should fix on monetary assets prices.However, as the main target under the situation , macro-economy is much influenced by the security market volatility.

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What this paper is about

With the development of sign economy,which takes financing as the core, the monetary policy transmission mechanism varies a lot. Here is a question : wether monetary policy should adjust the general price index including monetary assets prices.The analysis indicates that monetary policy should fix on monetary assets prices.However, as the main target under the situation , macro-economy is much influenced by the security market volatility.

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Available abstract

With the development of sign economy,which takes financing as the core, the monetary policy transmission mechanism varies a lot. Here is a question : wether monetary policy should adjust the general price index including monetary assets prices.The analysis indicates that monetary policy should fix on monetary assets prices.However, as the main target under the situation , macro-economy is much influenced by the security market volatility.

Key concepts: Monetary policy, Economics, Monetary economics, Credit channel, Monetary hegemony, Monetary base, Volatility (finance), Real economy

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