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The Evolution of Money Creation Mechanism In China

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DOI: 10.38007/Proceedings.0001779


Zhenpeng Lan

Corresponding Author

Zhenpeng Lan


Abstract: This paper studies the evolution of money creation mechanism in China for the past decade. The evolution of the monetary base in the past two decades can be roughly divided into four periods. When the government increases their fiscal expenditure, the monetary base will increase as people will have more deposits in the commercial banks with more economic activities being promoted.


Keyword: Creation Mechanism, Periods, Fiscal Expenditure