apples profit margin UK faces longest fall in living standards since records began, says thinktank In 2010, China overtakes Japan for being the other world's economy. According to economists, China continues to be a developing country with fast pace of growth. Data released that Japan\'s gross domestic product is $1.286 trillion while it is worth $1.335 trillion for China. Another source shows that Japan is increasing at 2 to 3 percent in in comparison with 10 percent 12 months of China. In his theory, money supply is controlled by the central bank and is an exogenous variable with no interest rate elasticity. At this point, monetary demand depends on people's psychological "liquidity preference".