A GDP dynamics model and monetary financial policy
  • LUO Tianyong

Author information -
School of Finance, Guizhou College of Finance and Economics, Guiyang 550004, China

Abstract

This article applies a dynamics approach in the research of monetary law of movement under the complex system of social economical operation, and characterizes the movement of money in a social institutional framework during GDP’s formation. Assuming that humans’ pursuit of the return of their money expenditure is a sensible course of nature, it defines the expression of money circulation velocity, and proceeds to deduce the basic differential equation of money circulation. By solving this equation, we can get the expression for a GDP dynamics model. After empirically testing the expression, this article draws a conclusion: GDP and the money in circulation (M0) share the positive correlation when the monetary financial institution remains unchanged.

Keywords

GDP, cash holding balances, exogenous money, monetary financial institution

Cite this article

LUO Tianyong. A GDP dynamics model and monetary financial policy. Front. Econ. China, 2008, 3(2): 223‒239 https://doi.org/10.1007/s11459-008-0010-z


关于我们 | 联系我们 | 友情链接 | 高等研究院 | 财大首页
版权所有:上海财经大学 地址:上海市杨浦区武川路111号上海财经大学高等研究院307室 邮编:200433