Micro - Economy In China The Main Asset Selection Behavior Impact On Demand For Money

The theory of money demand is the key point of monetary research, the important part of macroeconomics and the base of macro-control by central bank. Forecasting the result of financial policy, the central bank can make out more correct money policies according to the present economy by researching the tendency of money demand.The asset-election behaviors of the micro-units, such as denizens, enterprises and financial institutions, have changed greatly since the open of China, the changes of regimentation, the development of financial innovation and the integration of the global economy during 21 century. The great changes in asset-election behaviors of micro-units affect the form mechanism of money demand. On base of the vital importance, the affection routine of the assets-election behaviors to money demand should be studied deeply according to the alteration of the macro-financial circumanstances. Under the new macroeconomics circumanstances, the asset-election behaviors of micro-units have affected the model of money demand by a new way. It's necessary to study the dynamic affection mechanism and build up a renascent analysis frame of money demand to do further research. On the base of synthetic analysis of the affecting mechanism and the overall macro-economy, it's of vital importance to put forward a research money demand model and use a theoretical model to analyze the key factors.Consequently, it's scientific to builds up a theoretical model of money demand used to test the affecting mechanism of asset-election behaviors to money demand in China by adopting Johansen (1988,1989) cointegration approach & Granger test and build up its error correction model according to the actual economics in China. As a result, the dissertation puts forward corresponding policy advice for China after the econometric test of the amount, the structure and the stability of money demand in China by adopting the Chow breakpoint test, Breusch-Godfrey test and VAR impulse responses test to build up the present forecasting model of money demand.