Analysis of Monetary Policy Adjustment Impacting China Stock Market

Specific evolution trend of monetary policy and economy and finance is interactive. The use of monetary policy will cause great impact on the development of economy and finance. In turn, the evolution of economic and financial pattern will certainly affect monetary policy, causing the changes of monetary supply and demand,conduction mechanism of monetary policy and even policy effect. Therefore, in any case the formulation of monetary policy must be based on the real economic and financial structure. Otherwise, monetary policy is likely to be greatly restricted and even wrong decisions appear, thus resulting in the huge turbulence to economic and financial development.