The Central Bank Said That The "Super Currency" 43 Trillion Has No Basis For &Nbsp; &Nbsp; Return To Prudent Policy As Soon As Possible.

In view of the current hot debate

The central bank's Financial Times yesterday released the full text of Zhang Jianhua's interview.

Zhang Jianhua said that money is a stock concept. Gross domestic product (GDP) is a concept of traffic, which can not be directly reduced, nor can it be used to reduce the volume of traffic in the first three quarters of this year.

But according to the commonly used M2/GDP calculation method in academic circles, China's money supply is still on the high side.

In response, Zhang Jianhua said that the sharp rise in M2/GDP in 2009 is a special phenomenon. It is the result of implementing moderately loose monetary policy in the face of the adverse effects of the international financial crisis, and can not draw the conclusion that China's M2/GDP will further rise.

He believes that the continuous growth of basic currencies and the expansion of monetary multipliers have resulted in the high growth of China's currency.

After the "double surplus" of the balance of payments has been formed, the underlying currency that has been passively invested through foreign exchange is increasing continuously.

From the end of 2002 to the end of 9 2010, the increase in foreign exchange accounted for 2.6 times the basic currency.

In addition, in the process of coping with the financial crisis, the central bank lowered the required deposit reserve ratio, coupled with the high credit level, which led to a decrease in the overstock and cash ratio of commercial banks, and the money multiplier increased significantly.

Zhang Jianhua also believes that our next stage should be as soon as possible.