A Research into the Relationship among Excess Liquidity, Excessive Foreign Exchange Reserve and Inflation--Evidence from the Monthly Data of Our lountry from 1997 to 2009
A Research into the Relationship among Excess Liquidity, Excessive Foreign Exchange Reserve and Inflation--Evidence from the Monthly Data of Our lountry from 1997 to 2009
Abstract The authors discusses excess liquidity and its representation in the condition of excessive foreign exchange reserve, and according to the principle mechanism of the supply and demand model of economics, makes a theoretical analysis of the causes of excess liquidity and inflation in the condition of excessive foreign exchange reserve. The author makes an empirical research of it with VAR model on the basis of the monthly data from 1997 to 2009. The research demonstrates that the increase in foreign exchange reserve really has impact on the prices of our country, but the impact is small. However, the change in exchange rate will cause great fluctuation of the prices of our country
CHEN Wen-Zheng. A Research into the Relationship among Excess Liquidity, Excessive Foreign Exchange Reserve and Inflation--Evidence from the Monthly Data of Our lountry from 1997 to 2009. Economic Survey, 2011, 28(2): 0143.
2011, Vol. 28 
