Enhancing the Effects of Money Supply on Economic Growth by Introducing Public Expectation

An analysis is made of the relationship between money supply and economic growth and the mechanism for money supply in China.It is concluded that money supply can influence a country's economy in the short term.So control of money supply is one of the means to adjust economy.But it is difficult to adjust economy by controlling money supply as the contributing factors of money supply are hard to control and predict.Thus,it is necessary to introduce public expectation to enhance the effects of money supply on economic adjustment.