Transmission Mechanism Of Monetary Policy That Reaction In Financial Crisis—A Simple Dynamic Model

摘要

According to the actual immature situation of financial market in China, economic variables related scientifically were selected for setting up a dynamic model about GDP growth rate, and money supply to explore monetary policy that reaction in financial crisis. Based on the stability analysis, it derived the track curve, and tested the model. Furthermore, using Matlab software, track curve image was obtained and the dynamic effects of monetary policy could be seen visually. Using the dynamic model, the growth rate of GDP was represented 8. 4951%, which was in good agreement with the result from National Bureau of Statistics. Meanwhile, the results illustrated that the dynamic model has high value. If adopted by the government, the model will play a rough predictor for the effects of monetary policy.