It is not appropriate to substitute M2/GDP for the Financial Interrelations Ratio(FIR)proposed by Goldsmith.FIR is mainly used to indicate the degree of financing through the market.M_(1) and GDP are closely related,t...It is not appropriate to substitute M2/GDP for the Financial Interrelations Ratio(FIR)proposed by Goldsmith.FIR is mainly used to indicate the degree of financing through the market.M_(1) and GDP are closely related,the growth of M_(1) from 1992 to 2012 in China was commensurate with the growth of the economy and price,and there was no so-called currency over-issuance,what was over-issued wasquasi-money.We should distinguish between money and quasi-money,and focus on the correlation between savings and investment,money,substitutes for money,and the substitution relationship between quasi-money and securities.展开更多
文摘It is not appropriate to substitute M2/GDP for the Financial Interrelations Ratio(FIR)proposed by Goldsmith.FIR is mainly used to indicate the degree of financing through the market.M_(1) and GDP are closely related,the growth of M_(1) from 1992 to 2012 in China was commensurate with the growth of the economy and price,and there was no so-called currency over-issuance,what was over-issued wasquasi-money.We should distinguish between money and quasi-money,and focus on the correlation between savings and investment,money,substitutes for money,and the substitution relationship between quasi-money and securities.
