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

Yang, S, Zhang, P and Wang, D 2011, 'An empirical study on foreign exchange assets and monetary base endogeneity of China based on the monetary base supply structure', in Qingyuan Zhou (ed.) Advances in Applied Economics, Business and Development, Dalian, China, 11-12 July 2011, pp. 177-183.


Document type: Conference Paper
Collection: Conference Papers

Title An empirical study on foreign exchange assets and monetary base endogeneity of China based on the monetary base supply structure
Author(s) Yang, S
Zhang, P
Wang, D
Year 2011
Conference name 2011 International Symposium on Applied Economics, Business and Development (ISAEBD 2011
Conference location Dalian, China
Conference dates 11-12 July 2011
Proceedings title Advances in Applied Economics, Business and Development
Editor(s) Qingyuan Zhou
Publisher Springer
Place of publication Heidelberg, Germany
Start page 177
End page 183
Total pages 7
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.
Subjects International Business
Industry Economics and Industrial Organisation
Keyword(s) Monetary Base Supply Structure
Foreign Exchange Assets
Monetary Endogeneity
DOI - identifier 10.1007/978-3-642-23023-3_27
Copyright notice © Springer-Verlag Berlin Heidelberg 2011
ISBN 9783642230196
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