International Journal of Science and Research (IJSR)
www.ijsr.net | Open Access | Fully Refereed | Peer Reviewed International Journal

Empirical Study on Endogeneity of Money Supply in China

Kailin Chen, Yaoqun Zheng

Abstract: This paper applies cointegration test and Granger causality test to make an empirical analysis on the endogeneity of China's money supply, and puts forward some suggestions on how to improve the effectiveness of China's monetary policy under the condition of the endogeneity of China's money supply.

Keywords: Money Supply, Endogeneity, Cointegration, Granger Causality Test