| Abstract | Considering the difficulty of indentifying the credit shock in the bank credit channel process, ,based on the Driscoll (2004),s idea, in this paper, we construct a new method to separate the bank of China credit supply shock. Then we give a proposition about the relationship between bank credit and output of China, and give a empirical analysis about the proposition ,including the total amount and the period of time. The results shows that from the reform , the credit channel is significant existing in general . However, for the financial market reform process of different period, the empirical results indicate that the relationship between credit and output is inverted "U" shape. We think it should owe to the incomplete marketization reform of China, especially in the recent reform period , so the financial marketization reform also did not led to financial innovation. For the policy, the significance of this paper mainly lies in two points: one is the interest rate marketization reform is a part of the whole economic marketization reform, so separate interest rate marketization is not feasible. The second is that a successful financial reform must could ignited financial innovation, otherwise the financial reform will not change the entity economy,s relying on bank credit . |