Please wait a minute...
Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front. Econ. China    2006, Vol. 1 Issue (2) : 256-271    https://doi.org/10.1007/s11459-006-0008-3
|
Determinates of the decline in the income-velocity of money in China: a new perspective
ZHAO Liuyan, WANG Yiming
School of Economics, Peking University, Beijing, 100871, China
 Download: PDF(402 KB)  
 Export: BibTeX | EndNote | Reference Manager | ProCite | RefWorks
Abstract The income velocity of money in China has been declining since the country s reform. By studying the money demand behavior in the agricultural and non-agricultural sectors, we found that the marginal propensity to money demand is much higher in the non-agricultural sector. This implies that as the share of the agricultural sector in national income declines, monetary expansion is expected to meet not only the needs of income growth, but also the rapid structural shifts in the sectoral composition of income. Hence, non-inflationary monetary expansion is possible as development proceeds. This provides a new perspective in understanding the decline in the income-velocity of money in China.
Issue Date: 05 June 2006
 Cite this article:   
WANG Yiming,ZHAO Liuyan. Determinates of the decline in the income-velocity of money in China: a new perspective[J]. Front. Econ. China, 2006, 1(2): 256-271.
 URL:  
http://academic.hep.com.cn/fec/EN/10.1007/s11459-006-0008-3
http://academic.hep.com.cn/fec/EN/Y2006/V1/I2/256
Viewed
Full text


Abstract

Cited

  Shared   
  Discussed