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．