Money supply:
The currency estimation caliber of central banks around the world is not exactly the same, but the basic basis of division is the same, that is, the size of liquidity. The so-called liquidity means that an asset can be turned into cash or commodities at any time, and it will not bring any losses to the holder. Different degrees of currency liquidity will lead to different turnover times in circulation, resulting in different purchasing power of currency and its influence on the whole social and economic activities.
Grading:
1. Cash in circulation (M0) refers to the sum of unit cash on hand and cash held by residents, in which "unit" refers to enterprises, institutions, organizations, military units, schools and other units outside the banking system.
2. The narrow money supply (M 1) refers to the demand deposit paid by M0 plus the company's check in the bank.
3. Money supply (M) in a broad sense refers to M 1 plus time deposits of units in banks, savings deposits of urban and rural residents in banks and customer deposits of securities companies. Among them, from July, 20001year, the People's Bank of China brought the customer deposits of securities companies into the broad money supply M2.
Monetary control mechanism:
1, indirect type
The characteristics of indirect regulation are that the economic system it relies on is a developed market economic system; There must be a fairly large and developed financial market; While the central bank uses economic means to carry out macro-control, it does not rule out the possibility of using administrative means to directly control under special circumstances; Better respect the autonomy of micro-financial entities.
Better play a buffering role and curb economic fluctuations.
2. Transitional type
Transitional supervision mode generally refers to the mode of transition from direct mode to indirect mode. This model is widely used in developing countries. Although some countries implement the market economy system, it is necessary to take some direct measures to control the economy because of the low level of commodity economy development, underdeveloped financial markets, large fiscal and foreign exchange deficits and serious inflation.
China's economic management system has changed from the traditional direct management system to the dual management system combining direct management and indirect management. For the operation of the national economy, the state uses both economic means and planned administrative means. Especially in the case of macro out of control, using some direct control means will get faster results.