2015/7/8 Annual Growth of us China Monetary Aggregates(M2) Monetary Aggregates and GDP (in trillion RMB) 甲中∮中少少心 China M2/GDP Broad Money as of GDP 2478 25121409 1996199820002002200420062008201020122014 Source: World Bank History of PBoc History of PBoC 1948-1952: establishment of pboc and the national 1948-1952: establishment of pboc and the national People's Bank of China was established in Declst, PBoC moved to Beiping(now Beijing )in Feb 1949 1948 in Shijiazhuang based on an consolidation of the huabei Bank, the beihai Bank and the xibei supervised by the State Council mer Bank in northern China Peoples Republic of China was established in Oct1, First set of rmb was issued and became the fiat money in northern China PBoC's major functions included money supply, financial markets and supporting economy reconstruction after civil war2015/7/8 4 Annual Growth of US Monetary Aggregates 1-19 China Monetary Aggregates (M2) and GDP (in trillion RMB) 1-20 0 20 40 60 80 100 120 140 China GDP China M2 21 China M2/GDP 0.82 0.89 0.94 0.99 0.97 1.00 1.07 1.15 1.24 1.34 1.36 1.44 1.54 1.63 1.59 1.62 1.60 1.52 1.51 1.78 1.81 1.80 1.88 1.95 1.93 0.80 1.00 1.20 1.40 1.60 1.80 2.00 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Broad Money as % of GDP China USA Japan UK Korea 2005 152.2 71.9 206.6 122.5 111.1 2006 158.8 74.1 204 132.1 119 2007 150.5 79.2 202.8 145 122.1 2008 150 84.3 209.1 166.6 129.1 2009 176.6 90.4 227 170.6 136 2010 177.5 84.7 226.1 168.7 131.2 2011 175.9 87.2 238 155.3 131.4 2012 182.4 87.8 241.3 153 133.3 2013 188.2 88.4 247.8 150.9 134.4 2014 193 89.5 251.2 140.9 139.9 Source: World Bank History of PBoC • 1948-1952: establishment of PBoC and the national banking system – People’s Bank of China was established in Dec.1st, 1948 in Shijiazhuang based on an consolidation of the Huabei Bank, the Beihai Bank and the Xibei Farmer Bank in northern China – First set of RMB was issued and became the fiat money in northern China – In southern part of China, Chiang Kai-shek's national currency was still circulating freely. 1-23 History of PBoC • 1948-1952: establishment of PBoC and the national banking system – PBoC moved to Beiping (now Beijing) in Feb.1949 – From Sept. 1949, PBoC became directly supervised by the State Council – People’s Republic of China was established in Oct1, 1949 – PBoC’s major functions included money supply, treasury management, stabilizing national financial markets and supporting economy reconstruction after civil war 1-24