The Analysis of Dynamic Correlation of China's Monetary Policy and Asset Prices

The paper use the monthly data between 1998～2009,and will study the dynamic correlation of Chinese monetary policy and asset price in the ways of both theoretical analysis and empirical analysis.The paper suggests that central bank should not regard the asset price as the target of monetary policy,and the central bank should not only pay more attention to the change of asset price,but also consider influnence of monetary policy on asset price while it also need to regard the future trend of asset price as an important factor to monetary policy.