Abstract:At the transitional period,China’S enterprises,residents and government organs have each be come money demand entities,the velocity of money circulation experienced a sharp fall at first and then be cam e stable,and a severe oversupply of money occurred China’S base money supply at the transitional period embodies a typical endogenous nature.From a long perspective,the money multiplier tends to become greater at first and then stable.The movement tendencies of money supply and demand have had a deep influence on the execution of moderately tight monetary policy.