Endogenous Research and Empirical Test on China's Money Supply

Under the condition of open,through the data from 1990 to 2013,the empirical test shows that China's currency are strongly endogenous. Reflect for the money multiplier is not stable,and have a big volatility; The monetary base does not have a long-term stable relationship with money supply,and they have a opposite trend between each other. It means that the central bank can not independently decide money supply as supported by exogenous theorists,which indicates the central bank could control the money supply to actively adjust macro economy. The central bank's monetary policy should change ideas,speed up financial reform,and take the initiative to meet the needs of market need monetary management.