| Abstract | In recent years, the development of China's economic structure and the financial structure has profound influence on China's monetary policy transmission process. In this paper, by means of time varying parameter VAR model with stochastic volatility (TVP-SV-VAR) , the dynamic change of China's monetary policy transmission is analyzed in detail. Research shows that the conduction effect of monetary policy is dynamic, along with Chinese economy gradually into the new normal state, the effectiveness of the quantitative adjustment policy which we more relied on in the past is gradually decreased. We should analyze the reasons of the change, optimize China's monetary policy adjustment continuously, and improve the effectiveness of monetary policy transmission. |