The Impact Of Fictitious Economy Development On China's Money Demand And Supply Relations

With the fast development of the modern market economy, the world economy has entered a highly fictitious time. At present, the global overall scale of fictitious economy has already greatly surmounted the entity economy, and the fictitious economy is playing an important role in every aspect. This article studies our country's money supply and demand relations under the circumstance of fast developing fictitious economy, tries to establish a more completed analysis frame with the method which synthesized the theory and empirical study. It is hoped that this article can play a role which offers a few ordinary introductory remarks so that others may offer their more valuable ideas.Based on the research made by domestic and foreign scholars, the article firstly defines the concrete category of the fictitious economy will be studied, and makes a basic outline of the development history as well as the characteristics of China's fictitious economy. Secondly, from the aspects of supply and demand, the significant influence brought to our country's money supply and demand by the development of fictitious economy is elaborated. The quantity, structure and stability of money demand as well as the fundamental money, money multiplier and endogenous impact of money supply under the fictitious economy have been thoroughly analyzed by the means of theoretical analysis and empirical study. Thirdly, by extending the traditional "IS-LM" model and merging factor of fictitious economy development into the "IS-LM-FM" model including capital market, the influence brought to our country's money supply and demand by the development of fictitious economy is comprehensively analyzed. Finally, based on the analysis above, corresponding suggestions on how to deal with the money supply and demand relations under the fast developing fictitious economy have been proposed.