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Study on the
effect of inflation growth of China's foreign exchange
reserves
Abstract
Whether China's foreign exchange reserves have
impact on inflation,have what effect,have very important significance for the
actual economic operation in china.This paper tries to reason for the increase
in foreign exchange reserves from the analysis of the reason,cause inflation
levels are increasing foreign exchange reserves.This is mainly caused by the
increase in foreign exchange and monetary base by the increase in foreign
exchange reserves,causing the increase in money supply,thus raising the price
level,finally obtains a long-term stable relation between the foreign exchange
reserves and the general price level.
Keywords:foreign exchange
reserves; inflation; foreign exchange reserves; money supply