An Empirical Study On The Impact Of The Relationship Between Money And Output

The study of the relationship between money and output has always been a hot topic in monetary economics and macroeconomics.Since 1961,the United States Citibank first introduced large amount of negotiable certificates of deposit,the global set off a wave of financial innovation.The development of financial innovation not only promote global economic development,but also,at the same time,bring the implementation of national monetary policy and the selection of intermediate target of monetary policy of the world great distress.In recent years,the United States and other developed countries have gradually reduced the intermediate target-money of monetary policy and turned to interest rates.The reason may be that financial innovation makes the original relationship between money and output have changed.Therefore,this paper aims to explore the impact of financial innovation on the relationship between money and output.This paper firstly reviews the relevant theories of financial innovation and the relationship between money and output.Secondly,it analyzes the current situation of China's financial innovation.According to the situation,the paper divides the financial innovation period from 2002 to 2016.Secondly,this paper analyzes the current situation of China's financial innovation.According to the current situation,the paper divides the financial innovation period from 2002 to 2016.Time frame of this paper--2002 to 2016 is divided into two stages of financial innovation.And the paper makes a descriptive statistics of the relationship of the money and output in the two financial stages.Then,this paper makes and analyzes some theory-oriented structural measurement models for the relationship between the different money supply and output and the relationship between the different money supply and the components of output.And then,follow the previous section,this paper makes the impulse response analysis by constructing VAR models with different money supply,different money supply and output components,and the results are analyzed and compare comprehensively.At last,this paper summarizes the results and illustrate the limitations of this study and the direction of future research.