Notice of RetractionOn Chinese Monetary Policy´s Validity

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

This paper introducing interest rate, investment and consumption concepts and adopting modern computing/econometric techniques based on monthly data from 2000 to 2007. Study shows that there exist long-term stable relationship between M2, M1 & M0 and investment respectively, and M2, M1 and M0 are of significantly positive correlation with investment. The testing results of Granger causality show that M0, M1 and M2 are respectively Granger cause of investment, but investment is not Granger cause of M0, M1 and M2. Last, relationship between money supply M2, M1 & M0 and consumption are examined. Study indicates that there exist no long-term stable relationship between M2, M1 and consumption, but there exists long-term stable relationship of significantly positive correlation between M0 and consumption.