As China's economy enters a stage of high-quality development, the People's Bank of China, in accordance with the decision-making arrangements of the CPC Central Committee, adapts to the profound adjustment and changes of population structure, economic structure, external environment and other factors, constantly innovates and improves monetary policy regulation, and promotes economic operation in a reasonable range.

According to the comparison between the growth of M2 and GDP, we find that the money supply shows a downward trend, while GDP is relatively flat. However, in 20 19, China's GDP decreased by 3.8%, and the growth rate of M2 in the same period was 1.4%. In 2020-202 1 year, the average M2 deceleration in China was 1. 1%, and the average nominal GDP growth rate reached 5.8% in the same period. 202 1 by 2022, m 2 will increase to 9.65%, and after public relations control, GDP will drop to 3.0%.

It not only maintains the stability of financial support for the real economy, but also avoids flooding, and the macro leverage ratio is basically stable.

The ratio of M2 to GDP reflects the efficiency of economic operation. The higher the ratio of M2 to GDP, the lower the efficiency of economic operation, because it is equivalent to investing a lot of money but producing less GDP.

On the contrary, the lower the ratio of M2 to GDP, the higher the efficiency of economic operation. M2 corresponds to the accounting savings balance, and the growth rate is the savings rate. As China's savings rate is higher than GDP growth rate, M2/GDP shows an upward trend. On the other hand, M2 corresponds to loan debt, so the higher M2/GDP means that the higher the debt level, the greater the monetary resistance to the natural economic growth, so it is necessary to slow down the economy.

In recent years, with the continuous innovation and development of domestic financial industry, the limitation of statistical caliber of M2 indicator weakens its measurability and effectiveness as an intermediate target of monetary policy.

However, this weakening is reflected in the relationship between M2 and economic growth rate, only in the attenuation of the impact intensity, and has not broken the stable correlation between the two running trends. The data shows that in most periods, there is still a strong lag positive correlation between domestic M2 growth rate and GDP growth rate, but in some special periods, M2 growth rate is negatively correlated with economic growth rate.