Analysis of money supply control ability of People's Bank of China

This article firstly through the monetary base and the money-supply multiplier,theoretically analyzes the money supply control ability.At the same time the imperfect market economy system of our country also makes it more difficult to control the money supply.Moreover under the background that the financial innovation,the relaxes of finance controlling and the whole-world financial market integration,the boundary among money supply quantity of each levels is more difficult to determine,and the expansion coefficient of monetary base has also lost the former stability.This further strengthens the endogenous character of money supply.Through the comprehensive analysis to the complicated factors above,the article discusses the deep reasons why the central bank of our country can not control the money supply.