Factors That Affect The Cash Requirements Of Baoji City

Cash is the most active part in currency circulation. Its safety supply is not only directly related to the health and stability of social economy and people's life but also influence money supply and price level. However, with the continuous development of social economy and the continuous adjustment of the financial system, the factors that influence the safety of cash will increase constantly. In recent years, the research in demand function for money which takes money supply as the intermediate target of monetary policy has achieved dramatic results. But all the results are the laws of money demand in social economy from the aspect of cash operation in the whole nation, the research in law and quantitative model of local cash operation is relatively scarce. The money demand in national level is not exactly reciprocal with the local cash operation in micro level, so only when the local cash supply is safe can the cash safety in national level be guaranteed. The factors that influence the changes of the local and national cash supply have both commonality and individuality. Based on the macro money demand model, the Baoji economic and financial data in recent years is used to fully analyze the factors that influence local cash operation and actively seek the money demand model suitable for the laws of local cash operation.Studies show gross domestic product (GDP) is a variable that have more strong influence on local cash demand model while gross domestic product (GDP), fixed investment and marketable value of securities are all important variables that affect cash demand in national cash supply model; Consumer price index (CPI) can't pass T Test in regression analysis, and the variables in price factors of risk assets, which use marketable value of securities as index, are not agree with the signals or can't pass significance test in the model estimation. It is shown that the variables like CPI and price factors of risk assets can't heavily influence the local cash supply model. Therefore, in the local cash supply, the important economic variables that influence local cash supply shall be treated with certain discrimination and analyzed carefully so that the provisions for cash supply can be made appropriately and the safety and stability of regional economy and local financial order can be ensured.