Quantity Theory Of Money: A New Demand Function Of The Proposed Currency

Quantity theory of money is a kind of change in the amount of money in circulation to explain the description of market changes in commodity prices, monetary theory, namely, the general price level determined the amount of money, the more the quantity of money, the higher the price level. Therefore, when the supply reaches a certain amount of money, it will cause inflation, even hyperinflation. The theory is an important aspect in the theory of money demand in Western economics. Western scholars'research has had a long history, the theory in China was not very long. The reason why this issue seriously studied mainly based on the following two points:First, the whole point of view, because in the extremely well-developed commodity economy today, the currency equivalent of the general existence and continue to evolve is clearly a national monetary policy on development and implementation, down to the main types of market economy, the economic operation and management of deployment to a single perpetrator of small transactions and transactions of individuals and factors influence important decisions, so the reality of the supply of money will be subject to the above three-the State, enterprises and individuals to provide relevant decision-making and survival of theoretical support; two specific issues from the point of view, because the "excess " phenomenon is based on the money supply, stable money demand function derived in this assumption, and its conclusions against has become the stability of money demand function fatal blow, while money demand function is a very classical economic theory and the theory has an important influence components. Therefore, the issue of good for our economic growth, development and economic transition have a profound practical and theoretical significance.This article is divided into five parts:The first part is the introduction. Describes the background of topics, research status, research methods and basic ideas and innovation of this article; the second chapter is the quantity of money on the review and comparative analysis. It described in detail earlier in which the quantity theory of money, the traditional quantity theory of money, the modern quantity theory of money and the quantity theory of money in China's main content, the key is carried out some comparative analysis; The third chapter is "Chinese Puzzle ":the quantity theory of money based on the generalized Model. The "Chinese Puzzle " made on "the mystery of China, " Review of the existing theory and defect analysis and model based on generalized quantity theory of money and so do the analysis shows, leads to ChapterⅣ; The Fourth chapter is co-And Error Correction Model Estimation of the annual money demand function, proposed a complete real situation of China-based money demand function, test and measure its policy recommendations; The Fifth chapter is the complete quantity theory of money, a summary of the main part of the preceding theoretical and empirical conclusions, and then further instructions.