Money and monetization in China's economic reform

In addition to privatization, marketization, liberalization and pragmatization, monetization has been argued as the fifth feature in China's economic reform. If monetization is taken to mean a process through which variations in money supply or interest rate are to affect macroeconomic variables, the construction of four causality relationships between interest rate and savings, money and inflation, interest rate and investment, and money and national income do not support the evidence of such a process in China between the late 1970s and early 1990s.