| The endogenous driving force for economic development lies in the most basic market supply and demand relationship,but it is difficult to let the blind development of the market get rid of the limitations of the market itself and make the economy out of control.At this time,a strong and powerful force is needed to correct and adjust the trajectory of economic development,and the government has the responsibility to fulfil it.This makes the government not only as a night watchman for economic development,but also as a leader of economic development.And one of the most important means for the government to regulate the economy is to formulate a monetary policy to regulate the amount of money.The core of formulating monetary policy is to actually control the amount of currency issuance,which affects the proportion of consumption and investment in a specific period,and then controls excessive or too slow economic growth.In China,the People's Bank of China formulates and regulates the supply of money and implements macroeconomic financial control.Putting it into practice,it actually uses a series of transmission mechanisms.Its transmission mechanism is: the central bank adjusts the base currency,and then adjusts the money supply of the whole society,and then affects the amount of funds in the entire market.It must be directly reflected in the physical investment level,which is expressed when the money supply changes.,Will affect physical investment and economic growth through interest rates,asset prices and credit channels.In the process of exploring the pulling effect of currency expansion on economic growth,this paper uses the internal transmission mechanism of the capital flow table to construct the pulling effect model of currency expansion on physical investment and the effect model of physical investment change on economic growth.Models to build a model of the effects of currency expansion on economic growth.This article collects,organizes,and analyzes the data of financial flow and financial flows from 2010 to 2017 published by the National Bureau of Statistics.It compiles investment and financial capital flow matrix tables to explore the money supply starting from changes in the money supply.The effect of volume change on physical investment,and a model of the effect of change in money supply on physical investment,and then a model of the effect of change in physical investment on economic growth,so that the effect of currency expansion on economic aggregates is obtained.The pulling effect and its pulling effect on the added value of the non-financial corporate sector,financial institution sector,government sector,and household sector sub-sector.Later,by comparing the pulling effect of monetary expansion on economic growth from 2010 to 2017 and comparing the pulling effect of monetary expansion on the added value of various sectors,we further concluded that:(1)monetary expansion has a certain degree of positive effect on economic aggregates.The pulling effect is different,but the performance is different in different economic cycles(that is,different stages of economic development);(2)When analyzing different sectors,the pulling effect of currency expansion on the added value of each sector is also significantly different.Among them,when the money supply increases,the pulling effect on the added value of the nonfinancial corporate sector is the largest,and the pulling value on the financial institution sector,the household sector,and the government sector is relatively small.At the same time,by comparing the pulling effect coefficients of currency expansion on the added value of various sectors from 2010 to 2017,it is found that the pulling effect of monetary expansion on the added value of financial institutions and government departments is smaller;the pulling effect on the household sector is also smaller Moreover,the pulling effect of currency expansion on the added value of the household sector is generally decreasing. |
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