The Empirical Study Of The Symbiosis Of Endogeneity And Exogeneity Of China’s Money Supply

The money supply endogenous and exogenous issues both an importanttheoretical issue, but also an important practical issue, which is directly related to theeffectiveness of monetary policy and monetary policy choices. After World War II, tothe Keynesian and monetarist Milton Friedman advocated on behalf of the moneysupply is exogenous theory has been considered mainstream economics point of view,but most scholars believe that our country in terms of the base currency continuedhigh foreign exchange makes our money supply showed endogenous characteristics.Whether domestic or foreign scholars who study the nature of the money supply whenthe general is from a particular aspect of the base currency or monetary multiplier toanalyze the nature of the money supply and the money supply is not completely denythat both endogenous and exogenous.In this paper, a theoretical analysis and empirical analysis, qualitative analysisand quantitative analysis methods, the monetary base and the money multiplier fromtwo factors comprehensively demonstrated the nature of the money supply. Thispaper analyzes the impact of these factors show that China ’s money supply on thebasis of the presence of endogenous monetary terms, in the presence of exogenousmoney multiplier aspects, namely, inside and outside of China’s money supply issymbiotic, on the whole showed strong endogenous and weak external naturecharacteristics. In this paper, this conclusion under the initiative to improve theeffectiveness of monetary policy and monetary policy recommendations.