Research Of The New Broad Money Supply (M3and M4)

Currency plays an important role in the development of economy. It is meaningful for national macro-control and management of using a scientific method to divide and statistic the level of currency circulating in the economy reasonably. In theory, the research scope of currency has been expanded from the field of commodities to capital field and derivatives field. And the development of capital markets and derivatives market is rapid and the scale of these two markets is large. However, in practice, none country has ever considerate the currency of capital market and derivatives market in the scope of its divided and statistical level of money supply. This is a major omission and deletion. In this context, the paper analyzes the creation mechanism of currency in the capital markets and derivatives markets and puts forward the broad money supply volume indicators M3and M4which include the currency liquidity in capital markets and derivatives market, so as to provide a new perspective to observe and analyze the economy.Then, we statics the M3and M4indicator of the United States and analyses in size and structure. And we also do an empirical research on the relationship between the new broad money supply and economic growth by using U.S. data. Finally, we get the conclusions on the basis of theoretical analysis and empirical research and draw some inspiration.