The Creation Of Currency And The Surplus Between Deposits And Loans

The surplus between deposits and loans has been viewed as the logical result of restrictions to loan. It is not worth to be researched detailed. This paper is trying to analyze the issue from the new perspective of the creation of currency.The order that we discussed is: First, we explore some basic conceptions and the mechanism of currency creation in the traditional financial theory, and make the conclusion that the quantity of loan is determined by excessive reserve; Second, we analyze the surplus between deposits and loans under different way to get excessive reserve, and induce a model to analyze the surplus of our banking system since 1994;Finally, we make some proposal from the view of macro-financial planning and micro-management.This study combines the theoretical analysis with real examples, which makes this paper easy to understand. The researches of forefathers give author inspiration. Because this research covers a lot of field, some problems are also difficult to rein by myself, still need to continue probing into.