Abstract From the perspective of monetary policy regulation, this paper investigates the extent to which the use of monetary policy intervention and information communication could stimulate the “catalyst” effect of market sentiment for the purpose of improving the effective transmission of monetary policy, which further promotes economic development. Research shows that, the actual regulation of relatively loose monetary policy could enhance the confidence of entrepreneurs and consumers, while the rise in interest rates could, to some extent, dampen their confidence. In other words, a tight monetary policy could inhibit the expanding psychological mood. Verbal communication from the central bank is more effective than written communication in raising market confidence. There is still room for improvement in the communication of central bank policy reports with regard to the guidance of public market confidence.
2017, Vol. 34 
