Abstract
Credit expansion makes over-investment in capital goods in the upstream production chain, which reduces the efficiency of firm investment; credit expansion makes under-investment in consumer goods in the downstream production chain, which reduces the efficiency of firm investment. The impact of monetary policy changes on enterprise investment efficiency is temporal and sequential, and its intrinsic mechanism and transmission channels: credit expansion reduces enterprise financing costs, and funds will be concentrated in the long-cycle and capital-intensive upstream capital goods production link, leading to over-investment in capital goods and under-investment in consumer goods; large-scale investment in capital goods drives up the prices of its production factors, and the profit margin of capital goods production and sales becomes smaller, and The efficiency of investment in capital goods decreases; the credit crunch after the credit expansion, the rising cost of enterprise financing, the rising prices of production factors, the underinvestment in consumer goods, the oversupply of consumer goods, the subsequent rise in the price of consumer goods, and the decrease in the efficiency of investment in consumer goods.
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