Literature Review of Monetary Policy Transmission

Monetary policy is the main tool to realize macro-control, it plays a very important role in impacting macroeconomic. Starting from monetary transmission mechanism, this paper researches the monetary policy transmission channel and the asymmetry. At last, it studies several research methods. The result indicates that the monetary policy indeed exists asymmetry when transmitting. Actually compared with other channels, the credit channel plays a more important role. The aim of this paper is to provide a reference when government is implying monetary policy and making macro-control.