Monetary Policy on Inflation and Asset Prices Shock Effect ——Based on the Analysis of Monetary Search Theory
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Abstract Monetary Search Theory offers hypotheses about the nonlinear relationship among money, commodity prices and asset prices, in order to facilitate the monetary authorities to grasp the opportunity to intervene in prices and asset prices in different economic status more accurately. On the basis of the theory, the paper establishes the MS-VAR model to conduct empirical tests. The result shows that money supply and interest rate adjustment can have an impact on the stock market in the downturn of the stock market. When the stock market boom, it is more appropriate to use interest rate to inhibit the rise of asset price. The central bank should intervene in the asset price when necessary, pay attention to use a variety of tools, and place a particular emphasis on one aspect in different periods to control and coordinate price regulation.
LONG Xiao-Bei,JIAN Gun. Monetary Policy on Inflation and Asset Prices Shock Effect ——Based on the Analysis of Monetary Search Theory. Economic Survey, 2016, 33(6): 0125.
2016, Vol. 33 
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