Studies on Relation between Our Country Asset Price Fluctuation and Monetary Policy

Along with the financial liberalization and increasing capital stock market.This not only reflects the degree of financial deepening and improving,but also means that the stable relation between money supply and main economic indicators is becoming weaken.Asset price will produce profound effect on the formulation and implementation of monetary policy.The prices of shares and real estate play a more important role in the transmission mechanism of monetary policy.This article constructs a VAR model to test the relations among our asset price,monetary policy and monetary policy goals.The results can be concluded as follows: there is a longterm co-integration relation asset price among asset prices,monetary policy and monetary policy target.Asset prices have positive impact on output.The stock market obviously affects inflation,real estate not.Asset price is remarkably influenced by monetary policy.The impulse response of the stock market to monetary policy was significantly greater than the real estate market.