The surge in international capital inflows and the remarkable excess liquidity in China between 1997and 2007are examined in the present paper. It is shown that China＇s improved position in terms of foreign exchange p...The surge in international capital inflows and the remarkable excess liquidity in China between 1997and 2007are examined in the present paper. It is shown that China＇s improved position in terms of foreign exchange purchases, ignited by huge foreign capital inflows, has effectively induced excess liquidity in China. More importantly, by developing an econometric madel for inflation and excess liquidity, the present study demonstrates that excess liquidity has imposed significant pressure on inflation in China over the past 10 years. This finding suggests that excess liquidity in China has not only contributed to the rise in stock prices and the real estate market boom, but also affected the consumer goods market. The potential transmission mechanism of liquidity-driven inflation and policy implications of the findings of this study are discussed.展开更多
This paper investigates how a firm＇s characteristics restrict the influence of monetary policy changes on its investment behavior. Focusing on China＇s listed companies for a sample period from the first quarter of 2...This paper investigates how a firm＇s characteristics restrict the influence of monetary policy changes on its investment behavior. Focusing on China＇s listed companies for a sample period from the first quarter of 2002 to the first quarter of 2011, we find that quantity- oriented and price-based monetary policies have heterogeneous impacts on corporate investment behavior, but the influence of monetary policies is constrained by the liquidity, inventory, size and asset-liability ratio of a firm. Firms with higher liquidity, lower inventory level and lower asset-liability ratios are less sensitive to the impact from two kinds of monetary policies. The larger the size of the firm, the less it is subject to influenee from quantity-oriented monetary policy; it responds more to price-based monetary poliey. The policy implication is that the monetary authorities should pay attention to the importance of policy-making based on the monetary demand of mieroeconomie entities.展开更多
A pegged exchange rate regime has been pivotal to China＇s export-led development strategy. However, its huge trade surpluses and massive build up of international reserves have been matched by large deficits for majo...A pegged exchange rate regime has been pivotal to China＇s export-led development strategy. However, its huge trade surpluses and massive build up of international reserves have been matched by large deficits for major trading partners, creating acute policy concerns abroad, especially in the USA. This paper provides a straighOeorward conceptual framework for interpreting the effect of China＇s exchange rate policy on its own trade balance and that of trading partners in the context of discrepant economic growth rates. It shows how pegging the exchange rate when output is outstripping expenditure induces China＇ s trade surpluses and counterpart deficits for its trading partners. An important corollary is that given its strictly regulated capital account, China＇s persistently large surpluses imply a significantly undervalued renminbi, which should gradually become more flexible.展开更多
The Chinese Government has stepped up its drive to reconstruct its international ftnancial strategy after the sub-prime crisis developed into a global financial crisis in 2008. The main aim of the strategy is to reduc...The Chinese Government has stepped up its drive to reconstruct its international ftnancial strategy after the sub-prime crisis developed into a global financial crisis in 2008. The main aim of the strategy is to reduce the country＇s dependence on the US dollar in foreign trade, cross-border capital flows and foreign exchange reserve management. The strategy can be divided into three tiers： renminbi internationalization, regional monetary cooperation and reconstruction of the international monetary regime. So far, the Chinese Government has fared well in the application of all three tiers. We hoM that the Chinese Government should continue in the same direction in a coordinated manner despite various challenges it faces.展开更多
As natural ecosystems provide the material basis and fundamental support for regional sustainable devel-opment,the sustainability of natural ecosystems is an important prerequisite and a viable approach for the achiev...As natural ecosystems provide the material basis and fundamental support for regional sustainable devel-opment,the sustainability of natural ecosystems is an important prerequisite and a viable approach for the achievement of regional sustainable development.It is also the final criteria to assess whether sustainable development paradigm is successful.Along with the increasing impacts of human activities on natural ecosystems,the evaluation of regional ecological sustainability has become one of the key issues for research on macro ecology and sustainable development.Based on different unit of indicators,this study firstly groups the evaluation frameworks of regional ecological sus-tainability into three major types:comprehensive index evaluation with dimensionless unit,monetary valuation,and biophysical quantity measurement.We then discuss and compare these types in terms of basic principles,scope of ap-plications,advantages and shortcomings.Finally,drawn on the discussion about characteristics of ecological sustain-ability,we outline the current trend and future directions of regional ecological sustainability evaluation,for instance,transition from sustainable development evaluation to sustainability science,integration of goal-oriented and problem-solving approaches,combination of spatial pattern analysis and ecological sustainability evaluation,and en-hancement of ecological sustainability evaluation at landscape scale.展开更多
In the present paper, we model the policy stance of the People＇s Bank of China （PBC） as a latent variable, and the discrete changes in the reserve requirement ratio, policy interest rates, and the scale of open mar...In the present paper, we model the policy stance of the People＇s Bank of China （PBC） as a latent variable, and the discrete changes in the reserve requirement ratio, policy interest rates, and the scale of open market operations are taken as signals of movement of this latent variable. We run a discrete choice regression that relates these observed indicators of policy stance to major trends of macroeconomic and financial developments, which are represented by common factors extracted from a large number of variables. The predicted value of the estimated model can then be interpreted as the implicit policy stance of the PBC. In a second step, we estimate how much of the variation in the PBC＇ s implicit stance can be explained by measures of its policy objectives on inflation, growth and financial stability. We find that deviations of CPI inflation from an implicit target and deviations of broad money growth from the announced targets, but not output gaps, figure significantly in the PBC＇s policy changes.展开更多
Spillovers from China's monetary policy have become increasingly obvious with China's growing importance in the global economy and its close economic and trade ties with the world.This study establishes a prox...Spillovers from China's monetary policy have become increasingly obvious with China's growing importance in the global economy and its close economic and trade ties with the world.This study establishes a proxy structure vector autoregression model to investigate the magnitude and transmission channel of spillovers from China to global and regional economies,taking advantage of high-frequency changes in asset prices in the financial markets to identify monetary policy shocks.The analysis reveals that China's monetary policy can affect the global economy by influencing international trade and commodity prices but there is no evidence of China's monetary policy affecting global financial variables.Tightness in China's monetary policy can cause a decline in world output whereas expansion in monetary policy can support global trade and output.This study also finds that the response of emerging Asian economies to China's monetary policy shock was nearly twice that of developed economies,while the transmission path did not change.The results of this study are consistent with the stylized fact that China's monetary policy plays an important role in the global trade and commodity cycle,although it does not drive the global financial cycle.展开更多
This paper uses a stochastic volatility model structural break tests with unknown point, and a counterfactual simulation method to discuss the significant decline in inflation uncertainty in China over 1978-2009. We a...This paper uses a stochastic volatility model structural break tests with unknown point, and a counterfactual simulation method to discuss the significant decline in inflation uncertainty in China over 1978-2009. We attempt to quantify the contributions of better monetary policy and smaller structural shocks （including demand, supply and policy impacts） on the reduced inflation uncertainty. Empirical results in the present paper suggest that improved monetary policy accounts for only a small fraction of the reduction in inflation uncertainty from the pre-1997 period to the post-1997 period in China. The bulk of the significant moderation in inflation uncertainty arises from smaller shocks. This finding indicates that the quiescence of inflation in China over the past decade could well be followed by a return to a more turbulent inflation era. Therefore, the use of preemptive monetary policy to anchor inflationary expectations and keep moderate inflation uncertainty is warranted.展开更多
We investigate monetary policy effects on corporate investment adjustment,using a sample of China's A-share listed firms(2005–2012), under an asymmetic framework and from a monetary policy transmission channel pe...We investigate monetary policy effects on corporate investment adjustment,using a sample of China's A-share listed firms(2005–2012), under an asymmetic framework and from a monetary policy transmission channel perspective. We find that corporate investment adjustment is faster in expansionary than contractionary monetary policy periods. Monetary policy has a significant effect on adjustment speed through monetary and credit channels. An increase in the growth rate of money supply or credit accelerates adjustment.Both effects are significantly greater during tightening than expansionary periods. The monetary channel has significant asymmetry, whereas the credit channel has none. Leverage moderates the relationship between monetary policy and adjustment, with a greater effect in expansionary periods. This study enriches the corporate investment behavior literature and can help governments develop and optimize macro-control policies.展开更多
This study explores the relationship between external dependent economic structure, surplus monetary liquidity and real estate bubbles in China. Employing monthly data from 28 Chinese provinces over the period 2004-20...This study explores the relationship between external dependent economic structure, surplus monetary liquidity and real estate bubbles in China. Employing monthly data from 28 Chinese provinces over the period 2004-2005, we test whether real estate bubbles are caused by structural surplus monetary liquidity, ccontrolling other possible factors. Our empirical findings show that the growth of private savings in the banking sector, as an index of surplus monetary liquidity, ferments real estate bubbles regardless of the different development level across the 28 provinces.展开更多
Domestic asset price fluctuations triggered by the impact of the Fed's interest rate hike may lead to a spiral of mutual feedback between fluctuations in real economy and systematic risks of the financial sector.B...Domestic asset price fluctuations triggered by the impact of the Fed's interest rate hike may lead to a spiral of mutual feedback between fluctuations in real economy and systematic risks of the financial sector.By constructing a DSGE model of small-scale open economy including cross-border capital flows and supply-demand financial frictions,this paper describes the negative feedback mechanism formed by the interplay between domestic real-economy fluctuations and financial risks on both supply and demand sides under the impact of Fed's interest rate hike,and studies how to coordinate monetary policy and macroprudential policies under the goals of maintaining stable growth and preventing risks.展开更多
After the decoupling of the US dollar from gold in 1971,US Treasuries replaced gold as the value benchmark of the international monetary system and acquired an exorbitant privilege.Subsequently,the total amount of US ...After the decoupling of the US dollar from gold in 1971,US Treasuries replaced gold as the value benchmark of the international monetary system and acquired an exorbitant privilege.Subsequently,the total amount of US debt exhibited an exponential expansion trend,unbound by any substantial constraints.The so-called debt ceiling is a partisan game rather than a rigid fiscal constraint on the United States.As long as there are no fundamental changes in the global monetary system,the international credit of US Treasuries will stay stable,and their trend of infinite expansion will be sustained.Massive quantitative easing policies have failed to significantly shake this stability,and the notion of global investors offloading US Treasuries is more an illusion than a fact.The exorbitant privilege of US Treasuries grants its federal government the“freedom to borrow,”shielding the American financial sector from due penalties during global financial crises and securing excessive returns in global capital cycles.In the old days when running“twin surpluses”on capital and current accounts,China kept the value of Renminbi low to support its export manufacturing sector along the southeast coast.As a result,China accumulated huge foreign exchange reserves,mainly US Treasuries.Nowadays,this practice is no longer necessary,yielding low returns and posing significant security risks.展开更多
Economic cycles are not economic evils but rather healing agents for returning to equilibrium,just as inflation and deflation are not economic misfortunes but the sign of bad governance and a bitter medicine for retur...Economic cycles are not economic evils but rather healing agents for returning to equilibrium,just as inflation and deflation are not economic misfortunes but the sign of bad governance and a bitter medicine for returning to calm monetary.Unfortunately,signs of poor governance are mistaken for unfortunate events,but are instead tools offered to restore economic systems.Politics seeks consensus and does not accept the bitter cure of recession.Monetary policy is therefore called into question even if monetary anomalies also depend on errors in the management of the economy;the result is the gradual increase in interest rates.Is the idea that we can achieve the goal of complete neutrality with nature acceptable in a global economic framework pervaded by inflation and denunciation?Can we similarly argue that economic problems can coexist once the goal of neutrality has been achieved?The answer is negative.We must correct these anomalies and dysfunctions of the economy,which cannot coexist in the new context of complete and indefinite equilibrium of tomorrow.And not even the idea that conflicts can be resolved with war seems to find a place in the renewed scenario of neutrality.In this regard we can remember that,when we have reached the economic optimum of complete neutrality,or at least we are close to it,the most socially and economically advanced territories and continents will benefit from an acceleration of productivity and development.Scarcity itself will give way to the new,long-awaited reality.A condition that approaches the state of abundance and which will produce surpluses to be allocated to countries and territories that are struggling towards the condition of neutrality.The acceleration of lagging continents and the recovery of altered economic systems are therefore preconditions that can allow us to access the state of global neutrality.As we get closer to the great objective,it is to be believed that the pretense of regulating conflicts through war will also disappear.With the new reality of abundance,展开更多
Small and medium-sized enterprises(SMEs)constitute the primary drivers of production within the nation’s existing enterprise landscape.They represent the most dynamic segment of the national economy and play a pivota...Small and medium-sized enterprises(SMEs)constitute the primary drivers of production within the nation’s existing enterprise landscape.They represent the most dynamic segment of the national economy and play a pivotal role in supporting economic growth,fostering employment,and enhancing people’s livelihoods.However,despite their significant and extensive organizational structures,only a fraction of these companies have established internal control systems,and even fewer possess robust ones.Building upon this premise and considering the prevailing circumstances of SMEs,this paper undertakes an empirical analysis of monetary fund management within this sector.It delves into the operational intricacies,exploring how monetary funds should be effectively implemented to ensure their safety and integrity.Furthermore,it proposes viable strategies to enhance the circulation efficiency of monetary funds,thereby maximizing benefits for enterprises.Addressing these challenges is crucial for SME managers striving to achieve sustainable profit growth and navigate the complexities of financial management.展开更多
基金National Social Science Fund (No.08CJY048)the research funding from the"985 Project"of Renmin University of China with Grant No.21353232
文摘The surge in international capital inflows and the remarkable excess liquidity in China between 1997and 2007are examined in the present paper. It is shown that China＇s improved position in terms of foreign exchange purchases, ignited by huge foreign capital inflows, has effectively induced excess liquidity in China. More importantly, by developing an econometric madel for inflation and excess liquidity, the present study demonstrates that excess liquidity has imposed significant pressure on inflation in China over the past 10 years. This finding suggests that excess liquidity in China has not only contributed to the rise in stock prices and the real estate market boom, but also affected the consumer goods market. The potential transmission mechanism of liquidity-driven inflation and policy implications of the findings of this study are discussed.
基金the financial support from the National Social Science Fund of China(Grant No.10zd&034 and 12CJY115)the Foundation for the Author of National Excellent Doctoral Dissertation of China(Grant No.201102)+1 种基金the Social Sciences Foundation of the Ministry of Education of China(Grant No.12YJA790053)the Program for New Century Excellent Talents in University(Grant No.NCET-10-0688)
文摘This paper investigates how a firm＇s characteristics restrict the influence of monetary policy changes on its investment behavior. Focusing on China＇s listed companies for a sample period from the first quarter of 2002 to the first quarter of 2011, we find that quantity- oriented and price-based monetary policies have heterogeneous impacts on corporate investment behavior, but the influence of monetary policies is constrained by the liquidity, inventory, size and asset-liability ratio of a firm. Firms with higher liquidity, lower inventory level and lower asset-liability ratios are less sensitive to the impact from two kinds of monetary policies. The larger the size of the firm, the less it is subject to influenee from quantity-oriented monetary policy; it responds more to price-based monetary poliey. The policy implication is that the monetary authorities should pay attention to the importance of policy-making based on the monetary demand of mieroeconomie entities.
文摘A pegged exchange rate regime has been pivotal to China＇s export-led development strategy. However, its huge trade surpluses and massive build up of international reserves have been matched by large deficits for major trading partners, creating acute policy concerns abroad, especially in the USA. This paper provides a straighOeorward conceptual framework for interpreting the effect of China＇s exchange rate policy on its own trade balance and that of trading partners in the context of discrepant economic growth rates. It shows how pegging the exchange rate when output is outstripping expenditure induces China＇ s trade surpluses and counterpart deficits for its trading partners. An important corollary is that given its strictly regulated capital account, China＇s persistently large surpluses imply a significantly undervalued renminbi, which should gradually become more flexible.
文摘The Chinese Government has stepped up its drive to reconstruct its international ftnancial strategy after the sub-prime crisis developed into a global financial crisis in 2008. The main aim of the strategy is to reduce the country＇s dependence on the US dollar in foreign trade, cross-border capital flows and foreign exchange reserve management. The strategy can be divided into three tiers： renminbi internationalization, regional monetary cooperation and reconstruction of the international monetary regime. So far, the Chinese Government has fared well in the application of all three tiers. We hoM that the Chinese Government should continue in the same direction in a coordinated manner despite various challenges it faces.
基金Under the auspices of National Natural Science Foundation of China (No.40635028,40801066)State Key Laboratory of Earth Surface Processes and Resource Ecology of China (No.2008-KF-04)
文摘As natural ecosystems provide the material basis and fundamental support for regional sustainable devel-opment,the sustainability of natural ecosystems is an important prerequisite and a viable approach for the achievement of regional sustainable development.It is also the final criteria to assess whether sustainable development paradigm is successful.Along with the increasing impacts of human activities on natural ecosystems,the evaluation of regional ecological sustainability has become one of the key issues for research on macro ecology and sustainable development.Based on different unit of indicators,this study firstly groups the evaluation frameworks of regional ecological sus-tainability into three major types:comprehensive index evaluation with dimensionless unit,monetary valuation,and biophysical quantity measurement.We then discuss and compare these types in terms of basic principles,scope of ap-plications,advantages and shortcomings.Finally,drawn on the discussion about characteristics of ecological sustain-ability,we outline the current trend and future directions of regional ecological sustainability evaluation,for instance,transition from sustainable development evaluation to sustainability science,integration of goal-oriented and problem-solving approaches,combination of spatial pattern analysis and ecological sustainability evaluation,and en-hancement of ecological sustainability evaluation at landscape scale.
文摘In the present paper, we model the policy stance of the People＇s Bank of China （PBC） as a latent variable, and the discrete changes in the reserve requirement ratio, policy interest rates, and the scale of open market operations are taken as signals of movement of this latent variable. We run a discrete choice regression that relates these observed indicators of policy stance to major trends of macroeconomic and financial developments, which are represented by common factors extracted from a large number of variables. The predicted value of the estimated model can then be interpreted as the implicit policy stance of the PBC. In a second step, we estimate how much of the variation in the PBC＇ s implicit stance can be explained by measures of its policy objectives on inflation, growth and financial stability. We find that deviations of CPI inflation from an implicit target and deviations of broad money growth from the announced targets, but not output gaps, figure significantly in the PBC＇s policy changes.
基金support from the National Natural Science Foundation of China(No.71803008)the Fundamental Research Funds for Central Universities(No.2022QNPY32).
文摘Spillovers from China's monetary policy have become increasingly obvious with China's growing importance in the global economy and its close economic and trade ties with the world.This study establishes a proxy structure vector autoregression model to investigate the magnitude and transmission channel of spillovers from China to global and regional economies,taking advantage of high-frequency changes in asset prices in the financial markets to identify monetary policy shocks.The analysis reveals that China's monetary policy can affect the global economy by influencing international trade and commodity prices but there is no evidence of China's monetary policy affecting global financial variables.Tightness in China's monetary policy can cause a decline in world output whereas expansion in monetary policy can support global trade and output.This study also finds that the response of emerging Asian economies to China's monetary policy shock was nearly twice that of developed economies,while the transmission path did not change.The results of this study are consistent with the stylized fact that China's monetary policy plays an important role in the global trade and commodity cycle,although it does not drive the global financial cycle.
基金funded by the Ministry of Education of China through the Program for New Century Excellent Talents in University
文摘This paper uses a stochastic volatility model structural break tests with unknown point, and a counterfactual simulation method to discuss the significant decline in inflation uncertainty in China over 1978-2009. We attempt to quantify the contributions of better monetary policy and smaller structural shocks （including demand, supply and policy impacts） on the reduced inflation uncertainty. Empirical results in the present paper suggest that improved monetary policy accounts for only a small fraction of the reduction in inflation uncertainty from the pre-1997 period to the post-1997 period in China. The bulk of the significant moderation in inflation uncertainty arises from smaller shocks. This finding indicates that the quiescence of inflation in China over the past decade could well be followed by a return to a more turbulent inflation era. Therefore, the use of preemptive monetary policy to anchor inflationary expectations and keep moderate inflation uncertainty is warranted.
基金supported by a Major Project Grant of the National Natural Science Foundation of China (No. 71232004)two General Projects Grant of the National Natural Science Foundation of China (No. 71172082 71372137)
文摘We investigate monetary policy effects on corporate investment adjustment,using a sample of China's A-share listed firms(2005–2012), under an asymmetic framework and from a monetary policy transmission channel perspective. We find that corporate investment adjustment is faster in expansionary than contractionary monetary policy periods. Monetary policy has a significant effect on adjustment speed through monetary and credit channels. An increase in the growth rate of money supply or credit accelerates adjustment.Both effects are significantly greater during tightening than expansionary periods. The monetary channel has significant asymmetry, whereas the credit channel has none. Leverage moderates the relationship between monetary policy and adjustment, with a greater effect in expansionary periods. This study enriches the corporate investment behavior literature and can help governments develop and optimize macro-control policies.
基金the Key Institute Project of China's Ministry of Educationthe 985 Project of National Competitiveness Innovation Institute at Fudan University
文摘This study explores the relationship between external dependent economic structure, surplus monetary liquidity and real estate bubbles in China. Employing monthly data from 28 Chinese provinces over the period 2004-2005, we test whether real estate bubbles are caused by structural surplus monetary liquidity, ccontrolling other possible factors. Our empirical findings show that the growth of private savings in the banking sector, as an index of surplus monetary liquidity, ferments real estate bubbles regardless of the different development level across the 28 provinces.
基金Major philosophy and social science research project sponsored by the Ministry of Education"Research on the Construction of China's Monetary Policy System in the New Normal of Economic Development"(15JZD013).
文摘Domestic asset price fluctuations triggered by the impact of the Fed's interest rate hike may lead to a spiral of mutual feedback between fluctuations in real economy and systematic risks of the financial sector.By constructing a DSGE model of small-scale open economy including cross-border capital flows and supply-demand financial frictions,this paper describes the negative feedback mechanism formed by the interplay between domestic real-economy fluctuations and financial risks on both supply and demand sides under the impact of Fed's interest rate hike,and studies how to coordinate monetary policy and macroprudential policies under the goals of maintaining stable growth and preventing risks.
文摘After the decoupling of the US dollar from gold in 1971,US Treasuries replaced gold as the value benchmark of the international monetary system and acquired an exorbitant privilege.Subsequently,the total amount of US debt exhibited an exponential expansion trend,unbound by any substantial constraints.The so-called debt ceiling is a partisan game rather than a rigid fiscal constraint on the United States.As long as there are no fundamental changes in the global monetary system,the international credit of US Treasuries will stay stable,and their trend of infinite expansion will be sustained.Massive quantitative easing policies have failed to significantly shake this stability,and the notion of global investors offloading US Treasuries is more an illusion than a fact.The exorbitant privilege of US Treasuries grants its federal government the“freedom to borrow,”shielding the American financial sector from due penalties during global financial crises and securing excessive returns in global capital cycles.In the old days when running“twin surpluses”on capital and current accounts,China kept the value of Renminbi low to support its export manufacturing sector along the southeast coast.As a result,China accumulated huge foreign exchange reserves,mainly US Treasuries.Nowadays,this practice is no longer necessary,yielding low returns and posing significant security risks.
文摘Economic cycles are not economic evils but rather healing agents for returning to equilibrium,just as inflation and deflation are not economic misfortunes but the sign of bad governance and a bitter medicine for returning to calm monetary.Unfortunately,signs of poor governance are mistaken for unfortunate events,but are instead tools offered to restore economic systems.Politics seeks consensus and does not accept the bitter cure of recession.Monetary policy is therefore called into question even if monetary anomalies also depend on errors in the management of the economy;the result is the gradual increase in interest rates.Is the idea that we can achieve the goal of complete neutrality with nature acceptable in a global economic framework pervaded by inflation and denunciation?Can we similarly argue that economic problems can coexist once the goal of neutrality has been achieved?The answer is negative.We must correct these anomalies and dysfunctions of the economy,which cannot coexist in the new context of complete and indefinite equilibrium of tomorrow.And not even the idea that conflicts can be resolved with war seems to find a place in the renewed scenario of neutrality.In this regard we can remember that,when we have reached the economic optimum of complete neutrality,or at least we are close to it,the most socially and economically advanced territories and continents will benefit from an acceleration of productivity and development.Scarcity itself will give way to the new,long-awaited reality.A condition that approaches the state of abundance and which will produce surpluses to be allocated to countries and territories that are struggling towards the condition of neutrality.The acceleration of lagging continents and the recovery of altered economic systems are therefore preconditions that can allow us to access the state of global neutrality.As we get closer to the great objective,it is to be believed that the pretense of regulating conflicts through war will also disappear.With the new reality of abundance,
文摘Small and medium-sized enterprises(SMEs)constitute the primary drivers of production within the nation’s existing enterprise landscape.They represent the most dynamic segment of the national economy and play a pivotal role in supporting economic growth,fostering employment,and enhancing people’s livelihoods.However,despite their significant and extensive organizational structures,only a fraction of these companies have established internal control systems,and even fewer possess robust ones.Building upon this premise and considering the prevailing circumstances of SMEs,this paper undertakes an empirical analysis of monetary fund management within this sector.It delves into the operational intricacies,exploring how monetary funds should be effectively implemented to ensure their safety and integrity.Furthermore,it proposes viable strategies to enhance the circulation efficiency of monetary funds,thereby maximizing benefits for enterprises.Addressing these challenges is crucial for SME managers striving to achieve sustainable profit growth and navigate the complexities of financial management.
