Economic Structure Distortion and China's Money Puzzle:A Financial Repression Perspective
研究提出利率和汇率管制降低了持币成本、直接增加货币需求，并通过扭曲投资和外贸结构间接增加货币需求，从而解释中国的高货币增长。实证表明金融抑制至少使当前M2/GDP提高了30%。
The typical financial environment in the transition economy is financial repression,its biggest characteristics is interest rate control and exchange rate control.The authors propose that interest rate and exchange rate control decrease the cost of holding money and increase the money demand directly,and the resulting distortion of investment and foreign trade structure increases money demand indirectly.China's high money growth is resulted by meeting excess money demand.According to the definition of money,the paper uses China's 1994Q1-2010Q2 data to estimate the integration and error correcting model in the Engle-Granger two-step framework. The empirical results support the financial repression hypothesis.With the estimate result,the authors conclude that financial repression at least has increased the current M2/GDP by 30%.