The impulsion effects of financial innovation on the stability of money demand

摘要

This paper implant the divisia aggregation into VAR modal to make some empirical test of effects ofthe monetary demand on production. our conclusion is that in the background of financial innovaton, divisia aggregation is a more proper variabal to define money stocks. but as the fact that our country is a developing and transition country is concerned. the effects of financial innovation is not remarkable.