Influence of Overseas RMB on Domestic Money Supply——Based on the Reflow of International Currency
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| Title | Influence of Overseas RMB on Domestic Money Supply——Based on the Reflow of International Currency
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| Author | Yan Jiajia, Guo Chunsong, Huang Xin and Huang Wenbin |
| Organization | Fuzhou University |
| Email | 53896165@qq.com |
| Key Words | Overseas RMB; Domestic Money Supply; Eurodollar; Currency Reflow |
| Abstract | The paper estimates overseas RMB by calculating the money demand gap from the first quarter of 2006 to the third quarter of 2014. Accordingly, the state space model is used to prove that its impact on the domestic money supply is not significant at the present stage. By comparing the impact of Eurodollar on the USA money supply from 1961 to 2005, the paper suggests that the impact of RMB will gradually be evident in the future, which will threaten the stability of the domestic money supply. Based on the perspective of currency reflow, the paper analyzes the reasons about the difference between RMB and USD as well as offers recommendation. Lastly, it suggests the potential risks of oversea RMB reflow and the countering measures. |
| Serial Number | WP956 |
| Time | 2015-11-06 |
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