The Effect of Monetary Aggregates on the Stability of Money Demand
构建中国的Divisia货币指数，与传统简单加总货币总量比较，发现用Divisia指数作为因变量时货币需求函数更稳定，建议央行将其纳入货币政策参考。
In this paper,the author constructs Divisia monetary index for China,and compares it with the traditional simple-sum monetary aggregates by estimating long-term and short-term money demand functions.The results show that the money demand function is much more stable when the Divisia monetary index is used as the dependent variable.According to it,the paper concludes that Divisia index can reflect the changes in liquidity of the broad money more precision,so that the People's Bank of China(PBC) should construct Divisia money index, and include it as an alternative target variable in concluding its monetary policy.