Empirical Analysis on Relationship between Money Supply and Economic Growth in China

摘要

The relationship between money supply and economic growth is the focus of attention all the time. In recent years, with the rapid development of Chinese economy, the money supply of RMB increases in successive years. It is of great necessary to conduct empirical analysis on the relationship between money supply and GDP of our country to ensure a balance, healthy and rapid economic development. By selecting the data from 1986 to 2013, 27 years in total, it conducts empirical analysis on this issue through unit root test, Granger causality test, co-integration test and establishment of error correction model, then it comes to a conclusion.