The Effect of Sterilized Intervention under Twin surpluses in China
Due to the large scale of twin surpluses (currency-account surplus and capital-account surplus) since 1994, the foreign assets, held by the Peoples Bank of China (PBC), and money supply have been dramatically increasing with the aim of fixing or stabilizing exchange rate. In order to guarantee the money supply target and maintain the independence of monetary policy, the PBC must take some measures to sterilize the passively expansion of money supply. The paper make empirical test on the effectiveness of sterilization intervention by monthly data from 2001 to 2008. The empirical results suggest that sterilized intervention is effective and monetary policy is independent during the whole period, but the sterilization coefficient isnt stable. Compared with the over-sterilized from Jan of 2001 to Dec of 2003, the sterilization intervention is less effective from Jan of 2003 to June of 2008. The paper interprets the empirical test results with Chinese monetary policy practice and draws conclusions.
Sterilized Intervention Twin surpluses of the Balance of Payments Sterilization Coefficient
Wei Jianguo Fang Jianzhen
School of Economics, Wuhan University of Technology, China
国际会议
第八届武汉电子商务国际会议(The Eighth Wuhan International Conference on E-Business)
武汉
英文
1261-1266
2009-05-30（万方平台首次上网日期，不代表论文的发表时间）