Financial experts say China needs 3-5 years to digest its currency

Financial experts said that 3-5 years to digest the currency of the Qin Qijiang, the former director of the Financial Institute of the People's Bank of China, the Central University of Finance and economics professor Professor, said today, optimistic that the digestion of the financial crisis in order to revive the economy and the excess money will take at least 3-5 years. Although in general, there is no fixed definition of monetary M2, it usually refers to a broad money supply that exceeds GDP. Qin Qijiang said that under the condition of market economy, the economic growth rate should be in keeping with the money supply, China's economy has been kept at around 10%, but the currency has been issued at 17%-20% growth, "the money supply is too much."　　He believes that in the period of financial crisis, through the issue of currency infusion liquidity to promote economic development, solve the problem of employment, is a special period of special means, but as the economic situation changes, monetary policy should return to normal. "Monetary issues cannot be solved by monetary policy itself, and it needs to be adjusted through economic restructuring and economic development," Qin Qijiang said.　　In his view, "Twelve-Five" planning has put forward clear ideas, if the implementation of the smooth, it will take about 3-5 years to digest the currency.　　But at the same time, he also expressed concern about whether the "Twelve-Five" plan can be strictly enforced, because from past experience, the "Twelve-Five" year of planning, local governments often for political performance, to adopt an expanded fiscal policy. According to official figures, in 2000,　　China's gross domestic product is 8.9 trillion yuan, the broad money supply is 13.5 trillion yuan, 1.5 times times GDP, more than 4.6 trillion yuan, and to 2009 years, China's gross domestic product is 33.5 trillion yuan, the broad money supply of 60.6 trillion yuan is 1.8 times times the GDP, the difference is more than 27.1 trillion yuan. From the current trend, the ratio between broad money supply and GDP is increasing. According to the National Bureau of Statistics released the first three quarters of GDP up to 26.866 trillion yuan, the super currency nearly 42.774 trillion yuan. (Sho Yu from Beijing)