Comparative Study of China's Monetary Policy Transmission Mechanism

From the current mainstream transmission mechanism of monetary policy,the paper divides transmission mechanism into three categories:interest rate channel, asset price channel and credit channel. Intercepting the data from January 2008 to August 2013, the paper carries out an empirical study on various transmission mechanisms of monetary policy. Econometric unit root test, co-integration analysis, multiple regression and other methods are applied in the study. Based on a single comparison, the paper compares the effects of three transmission channels comprehensively. The study shows that China's monetary transmission mechanism is mainly based on credit transmission and will remain so for a certain period of time in the future.