Pan Gongsheng: Research needs to be included in the scope of M1 statistics to better reflect the true situation of money supply

On June 19, Pan Gongsheng, Governor of the People's Bank of China, said at the Lujiazui Forum today that traditionally, we have paid more attention to the indicators of financial aggregates, but we are also constantly optimizing and adjusting them. In the past, monetary policy used to set specific target values for the growth rate of financial aggregates such as M2 and social financing scale. In recent years, quantitative targets have been faded and turned into qualitative descriptions such as "basically matching the nominal economic growth rate". From the perspective of the statistics of money supply, it is also necessary to adapt to changes in the situation and continue to improve. The M1 statistical caliber in our country was established 30 years ago. With the rapid development of financial innovations such as financial service facilitation, financial marekt and mobile payment, the scope of financial products that meet the definition of money supply, especially M1 statistics, has undergone significant evolution. It is necessary to consider the dynamic improvement of the statistical caliber of money supply. Personal demand deposits and some financial products with high liquidity or even direct payment functions need to be studied and included in the M1 statistical scope from the perspective of monetary function to better reflect the real situation of money supply.