Money Supply And The Development Of SMEs From The Perspective Of Financial Hoardings

Binswanger first proposed the concept of "financial hoarding" in 1997,which means this phenomenon that when the rate of return provided by the virtual economic system is higher than the rate of return on investment of the real economic system,a large amount of capital from the real economic system will flow into the virtual economic system,and temporarily not withdraw from the virtual economic system and reinvest in the real economic system.Scholars at home and abroad have conducted a series of studies around this phenomenon,and generally believe that financial hoarding is a product of economic and social development to a certain stage.Small and medium-sized enterprises are the new force to promote the development of the national economy and an important guarantee for the healthy development of the national economy.At the same time,we have to face up to the real problems encountered in the development of SMEs,such as financing difficulties,expensive financing,heavy tax and fee burden,low level of research and development,lack of high-end talents,and backward technology and equipment,and solve these problems that hinder the development of SMEs.The core of the problem is to give SMEs policy support and financial guarantee.To this end,a series of laws,regulations and policy measures have been issued from the central to the local level to encourage,support and guide the development of small and medium-sized enterprises.The market position of small and medium-sized enterprises has gradually improved and the business environment has been significantly improved.However,it is difficult for small and medium-sized enterprises to obtain financing.It still has not been effectively resolved.Practical and academic circles have carried out thorough investigation and analysis around this issue,and found that financial hoarding has a significant impact on the financing of SMEs.The article focuses on this issue and aims to explore the mechanisms and principles of financial hoarding affecting the development of SMEs.Based on the current economic and social development of our country(the average profit rate of the real economy is declining,the virtual economy is developing too fast,etc.),the article analyzes the relationship between the money supply and the development of SMEs based on the perspective of financial hoarding.First of all,combined with the current economic and social development of our country,theoretically analyze the reasons for the formation of our country's current financial hoard,its specific performance,and the various effects it has brought to the national economy,and measure the scale of the financial hoarding.Secondly,from the theoretical level,the effectiveness of the transmission of money supply to various sectors of the real economy under the impact of financial hoarding is tested.By constructing the behavior equation of each micro-subject,observe the transmission path of money supply changes to each micro-subject,and combine relevant data to evaluate the effectiveness of the transmission of money supply to each micro-subject under the impact of financial hoarding.Thirdly,analyze the relationship between financial hoarding and money supply,money supply and corporate financing,corporate financing and enterprise growth,and explore possible paths that financial hoarding affects the relationship between money supply and the development of SMEs.Finally,based on relevant statistical data,an empirical study of the relationship between financial hoarding,money supply and the development of small and medium-sized enterprises is carried out using econometric methods.The thesis is consisted of seven chapters.Chapter 1:Introduction.Introduce the topic background and research significance of money supply and the development of SMEs from the perspective of financial hoarding,clarify the basic ideas,research methods,main content and structural arrangements,and point out the possible innovations and deficiencies of this research.Chapter 2:Literature review and theoretical basis.The article is a follow-up study on the basis of financial hoarding theory,monetary policy transmission theory,credit rationing theory and enterprise development theory.The article is based on four aspects of financial hoarding related literature review,SME development related research literature review,and relevant literature review of monetary policy transmission effectiveness research,money supply and SME development related literature review to explore the breakthrough point of this paper,and finally found that the relevant research on the development of SMEs is mostly theoretical elaboration,although some relevant literature on money supply and SME development Empirical research methods such as econometrics have been introduced,but the in-depth and referential nature of the research remains to be discussed.This article combines the reality of my country's economic and social development and studies the relationship between money supply and the development of small and medium-sized enterprises from the perspective of financial hoarding,which has a certain novelty.Chapter 3:The performance,influence and measurement of financial hoarding in China.The theory of financial hoarding has not been produced for a long time.Based on the actual situation of my country's economic and social development,we analyze the formation and reasons of financial hoarding in our country,point out the various effects that financial hoarding may have on the national economy,and evaluate the scale of China's financial hoarding.Finally,analyze the relationship between China's financial hoarding and the mystery of China's currency.Chapter 4:Testing the effectiveness of money supply transmission under the impact of financial hoarding.First,analyze the transmission path of money supply to various sectors of the real economy under the impact of financial hoarding;secondly,construct the behavior equations of various social entities that include the impact of financial hoarding,and find out the impact of money supply changes on each microscopic entity;finally,Through parameter estimation and impulse response diagrams,we analyze the impact of money supply changes and financial hoarding shocks on various sectors of the real economy,including the impact on output,consumption,investment,prices,wages and capital stock.Chapter 5:Path analysis of financial hoarding affects the relationship between money supply and the development of small and medium-sized enterprises.Mainly explain the relationship and mechanism of money supply and financial hoarding,financial hoarding and corporate financing,corporate financing and corporate growth,and analyze the actual path of how the money supply affects the development of small and medium-sized enterprises,to pave the way for the following empirical research.Chapter 6:Empirical analysis of the relationship between money supply and the development of SMEs from the perspective of financial hoarding.This part of the content is mainly based on the relevant statistical data and the theoretical analysis in the previous article.It conducts empirical research and robustness test on the relationship between the money supply and the development of SMEs,and analyzes the empirical results.Chapter 7:Research conclusions and policy recommendations.On the basis of summarizing the research conclusions of the full text,it puts forward relevant suggestions to solve the difficulties and expensive financing of SMEs and promote the healthy development of SMEs.The conclusion of the paper can be summarized in five main aspects:1.Financial hoarding improves the systemic risk level of the virtual economic system.Financial hoarding is a product of economic and social development to a certain stage.Financial hoarding can enrich investors' investment channels,absorb excess currency in the market,slow down inflation caused by oversupply of currency,and is an important help to promote the continuous prosperity of the virtual economic system.However,the excessive amount of financial reserves has increased the systemic risk level of the entire virtual economic system and brought severe challenges to the development of the national economy,such as distorting asset prices,increasing financial risks,and affecting the transmission effects of economic policies.2.The impact of financial hoarding shocks on output and investment is negative and lasts longer.Based on the perspective of financial hoarding,the article first constructs a dynamic stochastic equation for the behavior patterns of each micro-agent,and observes the possible trajectory of each micro-agent's action as the money supply changes.The dynamic stochastic equations reflect that changes in the money supply will bring certain changes to the household sector,business sector,and government.This change may be a change in nominal value or a change in actual value.Finally,through parameter estimation and impulse response diagrams,it is found that the impact of financial hoarding on output and investment is negative and has a long duration,and the impact on physical capital is also negative and has a long duration.3.The financing of SMEs relies too much on indirect financing.The article analyzes the actual path that money supply affects the development of small and medium-sized enterprises,and finds that the current financing problems encountered by small and medium-sized enterprises in my country are difficult and expensive.The main reason is that their financing channels are too simple,the capital market development is not perfect,and the lack of direct access to be participated the convenient channel in the capital market has caused it to rely too much on indirect financing.4.Financial hoarding squeeze out the financing space of the real economy.Although one of the large amounts of capital in the financial hoarding field is to invest in stocks or bonds,the proportion of small and medium-sized enterprises for direct financing through stocks or bonds is very low.After flowing into the financial hoarding field,the possibility of reinvesting in the real economy is very small.A large part of the capital in the field of financial hoarding comes from the supply of money,and corporate financing also depends on the supply of money in the market.The relationship between the two is more of a trade-off and substitute for each other.Therefore,the continuous expansion of the scale of financial hoarding has led to a decrease in the amount of financing available to the real economy.5.Financial hoarding prevents money supply from flowing into small and medium-sized enterprises.The increase in the supply of broad money due to financial hoarding has not only failed to promote the development of small and medium-sized enterprises,but has been detrimental to the development of small and medium-sized enterprises.Regulation may induce macroeconomic risks and financial systemic risks.The research aims to reveal the objective reasons for the difficulty of financing for small and medium-sized enterprises,and it is hoped that this research can provide references for those in power and small and medium-sized enterprises,and broaden their thinking for solving the financing problems of Chinese small and medium-sized enterprises.