Research On China's Foreign Exchange Reserves And Monetary Policy

After the reform of Chinese foreign exchange system in 1994, foreign exchange reserve tends to be an important factor that may firmly influences the progress of macroscopical economy because of the increasing foreign exchange reserve and the gradual openness of Chinese economy. This essay will analyze the scale of Chinese foreign exchange reserve, especially focus on some influence that Chinese monetary policy encounters from excessive foreign exchange reserve.Within the definition of moderate scale of foreign exchange reserve and current monetary policy, this essay will research the scale of Chinese foreign exchange reserve in terms of theory and reality. Therefore, the point is that Chinese foreign exchange reserve is excessive. According to the principle of monetary policy, this essay will attempt to analyze the relationship and effects between excessive foreign exchange reserve and monetary policy, and present that government may use sterilized policy of foreign exchange as the main method of intervention policy to harmonize reserve policy and monetary policy. Also, this essay will present some relative suggestion and measures about improvement and promotion of sterilized intervention policy of foreign exchange.The first part is an introduction. This part will analyze the foreign exchange reserve and the research background of the monetary policy of our country, summarize the domestic and international research result, and introduce the main contents, main work and structures of the article.The second part divides a review of stage of the development of the foreign reserve, then analyzes the reasons of the significant growth of foreign exchange reserve after the 1994 foreign exchange system reform.The third part is the study on the Chinese appropriate foreign exchange reserve. Firstly this chapter defines two definitions of the appropriate foreign exchange reserve on the theories. Secondly, it summarizes the research results of the local...