The Study And Application Of Currency Flows Based On The Input-Output Model

it is always quite effective for the central bank to control the macro economy in monetary policy.However,it does work with little success in complex economic situation of both abroad and domestic economic.On one hand,the global economic growth slowly and the international financial market keeps unstable,what's more,the global real economy competition also increased the pressure to China export;on the other hand,the domestic economy tends to be slow down,and the devaluation rate of the currency is 1.4%compared to last year.Based on this background,the current status of Chinese currency liquidity could be summarized as following:a large number of capitals are out flowed to other countries,and the transfer speed of the global economic wealth obviously is quickly.In the past two years,the prices of currencies in the capital market and stock market.as well as financial assets has shrunk,which leads to most of investors have been not yet optimistic about the economic prospect,and Chinese family capital outflow might be in tighter control by its own government as well as the high monetary outflows.Obviously,monetary liquidity as an effective transmission tool of monetary policy,the ability to adjust economy will greatly weakened for the reason of being influenced by too much complex economic condition.Also,the central bank in the formulation of amount of monetary policy applied to macro-control effectiveness will be weakened.Therefore,my thesis have made a research on how to fully make use of the flows of monetary between government departments to deliver monetary policy better for economic development from the perspective of the changes in monetary flow of departments.So this issue is worth of being further analyzed.First,this paper introduces the background and significance of the selected topic.Second,the paper summarizes the theoretical research and the application method of monetary flow and output so as to provide sufficient theoretical guidance for the following models research.Third,we discussed the currency flow between multiple departments of national economy,and have discussed the static input-output model,continuous and discrete dynamic input-output model,the nonlinear static,dynamic investment into the output model,stochastic input-output models and so on the base of research results from many scholars.In addition,input-output model which has been established will be applied to analyze the flow of money,and each model of the last section is verified by economic data.Finally we can draw a conclusion that:in this paper,we establish the input-output model of monetary liquidity and have verified whether the input-output model can be applied to the feasibility of monetary flow.As a result,it has illustrated that the model research and monetary flow related economic problems is reasonable and feasible.Consequently,the central bank would take measures more scientifically and effective in the formulation and implementation of monetary policy.