The Influencial Factor Of Chinese Currency Velocity And Effect To The Policies

The transaction velocity of money is the circulating times of unit currency in a fixed period.In the real economy,for measuring the relativity of one currency and its input-output,usually we need the value of transaction velocity of money.From the Fisher equation,MV=PT,for any fixed revenue,the currency supply is decided by its transaction velocity.In the modern economic operation mode,the currency is the blood of the whole economy.So,for setting up the money policy,we can not only consider the amount of money supply,but concerned more about the fluence of money transaction speed.China is now in the processing of financial innovation,regarding the financial environment of one country,the changing situation of money transaction velocity may exhibit the existed problems of the country's economic development.So,research the problems of RMB transaction velocity more intensively or deeply is considering having an important significance.Firstly,in chapter two of this article,I describe the relevant theories of money transaction velocity,sketch its researching situation recently,and demonstrate its processing of developing and changing.Secondly,chapter three analyses Chinese currency transaction velocity,through the comparison and analysis of the charts and data,we can see that RMB transaction speed declined gradually after reform and opening in 1978.Besides,in this chapter,I analyze the reasons and influences of the descent of money transaction velocity in China.Thirdly,chapter four analyses the factors affecting Chinese currency transaction velocity explained with empirical analysis.Then,on the base of the analysis of the chapters above,chapter four mainly discusses the influences of RMB velocity effected by currency policies.Two points are illustrated:1?we still should make the currency supply to become the main intermediate target of Chinese policy.2?The money transaction velocity has a great influence on the implementation of China's monetary policy.Finally,in chapter six,make a brief summary and some policy suggestions...