A Study On The Endogeneity Of China's Currency In The Credit Currency Theory Perspective

Based on the theory of money origin,this paper establishes the analytical framework of marketed money creation with microcosmic basis,which includes the relationship between central bank,commercial bank and private three – sector assets and liabilities,combined with the theory of monetary endogenous and credit currency creation and elimination.This paper argues that money originated in credit relations,in order to create the real wealth of the future,by the state to provide endorsement of the banking institutions issued by the debt,the currency has a real external value without intrinsic value.On the microcosmic,market-oriented money creation is essentially a discount to the future reorganization of future earnings,representing the ability to schedule scarce resources,the expansion of the debt relationship in depth and breadth,the stock of money is the stock of countless unliquidated obligations.The above theoretical framework opens up the channel between money creation and microeconomic economic behavior,and incorporates the monetary and financial factors into the process of economic analysis.It has a theoretical basis and methodology in the establishment of an empirical basis,a basis of behavior and a foundation of practice.And this feature is not available in the traditional monetary and financial theory,the use of the above theory to analyze the supply of money in China and the resulting monetary distribution mechanism,the economic environment under different circumstances,there are also huge Practical significance.In this process,we use the logic analysis,case analysis to prove the endogenous nature of China's money supply,supplemented by modern measurement tools.Based on the above theory,this paper mainly analyzes the endogeneity of our currency from two angles.First of all,we believe that in the past,under the condition of distorting the allocation of credit resources,China still maintained the economic growth of nearly three decades because of the economic effect of opening up,which in turn includes two aspects: first,opening up to solve the problem of excess capacity.Second,opening up makes the introduction of technology and imitation and learning possible,which expands the boundaries of production possibilities.Secondly,we analyze a series of problems encountered in the economic operation after the above-mentioned constraints are changed,such as the credit expansion,the financial levers,and so on,which can be attributed to the microscopic unconstrained Financial discipline,the credit expansion mechanism,which is financed by fiscal accounts,destroys the entire monetary system.Furthermore,this paper re-discusses the competitive monetary system based on the theory of endogenous supply of credit money market and points out that the system has an unquestionable advantage in achieving the goal of "the right person to get the right amount of money at the right time".The policy implications of this article are also clear.First of all,the importance of money in the market economy requires us to vigorously develop Pratt & Whitney Finance.Second,actively promote property rights reform,the establishment of a binding financial discipline will help us improve the current monetary system,so that play an important price screening mechanism.To allow private issuance of money,try the competitive monetary system is conducive to solve our current problems encountered by the difficult.