Credit Scale And Economic Growth

With the emergence of new economic development, and operational activities for the socio-economic mode of operation is a big change. In order to meet the changing needs of the new economic situation , a large-scale financial innovation activities have been carried out on the financial sector. It get rapid development through these activities. The traditional stable relationship between currency-output is expected to be replaced by the relationship between credit-output . To further study the relationship between credit and economy through understanding credit has become a hot issue in front of us.In-depth study of Wu Jing-mei's modern theory of credit and reference on the basis of research results of Benjamin.M. Friedman, Luo Yu-ding, and Fackler, based on the actual situation of Hunan Province, we can reveal the relationship between Credit-scale and economic growth of Hunan Province by using developed econometric model in this paper. In answer to the Possibility of credit scale's promoting economic growth, we focused on a specific region (Hunan Province), a regional Analysis of the relationship between GDP and credit scale. Researches and summarizes the economic interdependence of the various levels of credit and its changes, finding that the credit structure and economic growth are closely related. Research on the credit of local government credit and micro-economic activities of the main operation and the impact of economic growth and economic contribution .Analysis of the specific activities of the economic impact of the credit, inspection and analysis and comparison between different departments of the credit scale and contribution to economic growth. We also revealed the credit activities development of Hunan Province, as a basis, analysis the credit data of Hunan Province through comparison to the current state, For the sake of constructing a "good faith Hunan", this paper concludes with policy recommendations, such as enhancing the credit level, expanding the scale of credit, improving Credit efficiency. It's a good help to local governments to control macroeconomy with adjusting the credit scale.