Savings, Foreign Exchange Reserves And The Monetary Supply Of Empirical Analysis

The paper discusses the relationship among savings, foreignexchange reserves and general money supply through the followingresearch methods -Vector Auto-regression Model and JohansenCo-integrating Test Model. Then a model about the relationship amongthree variables is set up. After that, all three variables, including savings,foreign exchange reserves and general money supply, are fully researchedby these methods, such as Impulse Response Function Model andGranger Cause-Effect Test Model. The result of this paper shows that along-term equilibrium relationship among savings, foreign exchangereserves and general money supply exists and the money policy has littleeffect on savings and foreign exchange reserves at present.