An Empirical Study of China's Monetary Policy Based on the Corresponding Analysis of the Growth Rate of Money Supply

Bingyang Guo

College of Science, Hunan City University, Yiyang, 413000, China

Abstract: The corresponding analysis results of China's money supply growth rate from 1994 to 2016 show that China has basically implemented a prudent monetary policy, and the growth rate of broad money supply is higher than that of GDP. Money supply has periodicity and short cycle. It mainly USES direct tools combined with indirect tools to regulate the money supply. Some Suggestions are put forward, such as the gradual transformation of monetary policy from multiple objectives to a single objective, the development of financing and other ways to accelerate the circulation of money, and the optimization of the use of multiple monetary tools to regulate the total money supply.

Keywords: Growth rate of money supply; Corresponding analysis; Financial innovation; Stable currency value