An empirical study on foreign exchange assets and monetary base endogeneity of China based on the monetary base supply structure

Shui Qing Yang, Peng Zhang, Dong Wang

Research output: Chapter in Book / Conference PaperConference Paperpeer-review

2 Citations (Scopus)

Abstract

Based on the monetary base supply structure, the relationship between monetary base and its components from December 1999 to August 2010 of China are explored by cointegration analysis, Granger causality, VAR models and other methods. The results show that issuing notes and withdrawing re-lending financial institutions have been important means of hedging the increasing net foreign assets, net foreign assets is the main Granger cause of the changes in monetary base and China's current money supply is endogenous obvious. Therefore, the government should widen the RMB exchange rate floating space and promote RMB internationalization process, try to solve the problem of increasing foreign exchange assets fundamentally.
Original languageEnglish
Title of host publicationApplied Economics, Business and Development: International Symposium, ISAEBD 2011, Dalian, China, August 6-7, 2011, Proceedings, Part I
PublisherSpringer
Pages177-183
Number of pages7
ISBN (Print)9783642230226
DOIs
Publication statusPublished - 2011
EventInternational Symposium on Applied Economics_Business and Development -
Duration: 6 Aug 2011 → …

Publication series

Name
ISSN (Print)1865-0929

Conference

ConferenceInternational Symposium on Applied Economics_Business and Development
Period6/08/11 → …

Keywords

  • China
  • foreign exchange
  • monetary policy

Fingerprint

Dive into the research topics of 'An empirical study on foreign exchange assets and monetary base endogeneity of China based on the monetary base supply structure'. Together they form a unique fingerprint.

Cite this