On the Endogencity of Currency Supply in China:Based on the Analysis of Cash Leakage Rate

The endogencity and exoyeneity of currency supply is an important theory and reality problem, right judgment of endogencity and exoyeneity of currency supply of a economic body has important significance for understanding the operation mechanism of currency supply, developing right currency policy and improving the effectiveness of currency policy. This article analyzes the effect of cash leakage rate on currency multiplier and currency supply, and draws conclusions that the endogencity of currency supply has increased in China. Finally, in the guidance of the conclusion, suggestions to choose the right currency policy and improve the effectiveness of currency policy in China are put forward.