monetary issue
2.This paper make an demonstrate study on the validity of money supply M2 to output of Chinese monetary policies,which is based on quarter date from 1992 to 2005 by using ADF test,Granger tes,VAR model and IRF model. It points out that M2 as the middle target of monetary policies can work on the output. At last,we evaluate and analysis the reasonable policies of M2 as the middle target of monetary policies,and give some suggestions on this issue.
