Study On The Relationship Between The Change Of Savings Deposits And Foreign Exchange Reserves And Economic Growth

This thesis studies the relationship between the changes of savings deposits and foreign exchange reserves and economic growth. The changing course of savings deposits and foreign exchange reserves is checked firstly. On this basis, their changing characteristics and causations are analyzed. And then, the relationship between the changes of savings deposits and foreign exchange reserves and economic growth is analyzed in the basic situation of China's economic growth since the beginning of reforming and opening up to the outside world. Furthermore, this relationship is studied empirically. Finally, some ideas and suggestions are proposed to diffract savings deposits and to make use of foreign exchange reserves. The main conclusions and suggestions are as follows:①Conclusions1) There is a positive correlation between the changes of savings deposits and foreign exchange reserves and economic growth. The increases of savings deposits and foreign exchange reserves can accelerate economic growth. And the economic growth contrarily boosts the scales of savings deposits, but it is not so strongly retroacting to the change of foreign exchange reserves.2) It is not harmonious for the changes of savings deposits and foreign exchange reserves to accelerate economic growth. One reason to this problem is that there exist clogs in the course of conversion from savings to consumption. And the pattern that economic growth depends on export and investment is not changed. As a result, consumption exhibits not very well in the composition forces of"troika".3) Big amount of savings deposits and foreign exchange reserves is not so terrible as it is said to be like flood or beast. So, scales of savings deposits and foreign exchange reserves should not be constrained. The sticking point is that the contribution of changes of savings deposits and foreign exchange reserves to economic growth must be paid attention. If the changes of savings deposits and foreign exchange reserves can enhance quality and efficiency of economic growth, they are just ok though in magnitude.4)Although savings deposits and foreign exchange reserves are embodiments of accumulated wealth for a country, display is not a nice purpose. The urgent affairs in China are how to diffract savings deposits and to make use of foreign exchange reserves, so that cost can be cut down and risk can be reduced. ②SuggestionsHow to diffract savings deposits:1)The policy planning urban and rural as a whole should be stuck to. And the gap between urban and rural should be narrowed. 2)Distribution mechanism should be consummated, so that income gap can be controlled. 3)Consumption policies should be adjusted and residents should be encouraged to consume. 4)Investment channels should be widened therefore residents investment can be enlarged. 5) Financial repression should be canceled, so rate market reforms may be pushed.How to make use of foreign exchange reserves: 1)The opening policy should be deepened so that foreign exchange system reform can be promoted. 2) The structure of monetary category should be optimized, and foreign exchange reserves diversification should be actualized. 3) Seeking global strategy so that the forms of foreign currency reserves are conversed. 4) Relaxing capital outflows so that overseas investment is promoted. 5) Notions such as comparative advantages should be rejected, and consequently, foreign exchange reserves can be benefit to Chinese people.