The Analysis Of The Endogeneity Of China's Money Supply

The endogeneity of money supply affects the supply initiative and the controllability, and increase the difficulty for the Central Bank's monetary policy operation.A probing into the endogenetic issue of current China's money supply will provide a theoretical basis and practical significance for adjustment and the consummation of monetary policy in open economy.Applying the method of theoretical analysis and empirical analysis,the qualitative analysis and the quantitative analysis,this paper systematically studies the endogenetic influencing factors of China's money supply from the two aspects of monetary base and money multiplier.According to the study,this paper argues that there exists certain endogeneity between monetary base and money multiplier and influence money supply's initiative and the controllability in China.This paper has carried on the analysis and the appraisal to domestic money supply regulation,and forecast its operation in the situation of financial crisis.To reduce the influence of domestic money supply endogeneity, this paper proposed to enhance the initiative of monetary policy and the effect of monetary policy.