The Velocity Of Money To Study The Impact Of China's Monetary Policy

The effect of monetary policy has been one of the hot issues of Economics.There a re many factors which affect the effects of monetary policy. Among this, the question of whether the monetary velocity would affect monetary policy effect and in what way aff ect it has always been controversial, theories are endless, the conclusions are different. With the development of money economy, the factors that affect the growing number of monetary policy, monetary policy decision-making process more complex. Therefore, the velocity of money a factor in terms of changes to clarify the impact of monetary policy on a comprehensive analysis of the impact of monetary policy is particularly important factors. Currency rate changes on the effects of monetary policy decision-making and the theory has become the focus of attention.In this paper, the velocity of money affect the mechanism of the effect of monetary policy, focuses on the real economy in the currency rate of change of currency policy. In this paper, the actual situation in China, pointed out that the money supply and not fully into the real economy, so when calculating the velocity of money into circulation of money will not be deducted on this basis, we calculated the real economy in China's currency speed and velocity of money circulation paper examines the impact of monetary policy. In the empirical test in this paper, phase analysis, the implementation of monetary policy and expansionary monetary policy tightening is divided into two distinct phase, two phases were observed and compared the velocity of money in monetary policy. Found that changes in the velocity of money would have offset the effects of monetary policy role, but at different stages, the velocity of money effects of monetary policy is not the same. Overheating in the economy, monetary authorities tightening monetary policy, monetary policy, the velocity of money on a larger effect. Therefore, in formulating monetary policy, the implementation of monetary policy, regulation and control money supply, we must give full consideration to the velocity of money in different conditions change the effects of monetary policy, which would set out to meet China's economic operation of monetary policy, monetary policies to better play.