An Analysis of Impediment of Transmission Mechanism of Monetary Policy in China's Stock Market

Since 1990's, the interactive relationship between stock market and monetary policy becomes obvious. Stock market has become a practical and more and more important channel of transmission of monetary policy, and is an important component of a perfect transmission mechanism of monetary policy. Good grasp of it is of great importance for the monetary policy authority to make monetary policy, obtain monetary policy goals, and increase the effectiveness of monetary policy. Under the new financial circumstances that the development of stock market has changed the system and transmission mechanism of monetary policy, all kinds of effective measures should be taken to promote the efficiency of monetary policy transmission.