【作者(必填)】

Zhuo Tan

a*

&

Shenggang Yang

b

【文题(必填)】Neutralization in China: evidence from the balancesheet of the People’s Bank of China
【年份(必填)】

Version of record first published: 31 Jan 2012

【全文链接或数据库名称(选填)】tandfonline 或者Taylor&Francis

Journal of Economic Policy ReformVolume 15, Issue 1, 2012

Neutralization in China: evidence from the balancesheet of the People’s Bank of China

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DOI:10.1080/17487870.2012.647776Zhuo Tana* & Shenggang Yangb

[size=1em]pages 25-31

Version of record first published: 31 Jan 2012

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Abstract

[size=1em]We evaluate China’s neutralization policy by monthly estimations based on the central bank balance sheet from 1999:6 to 2011:6. Our results suggest that China effectively neutralizes 66% of the change of net foreign assets under a pegged currency regime. Consequently, a purchase of one yuan of net foreign assets leads to an effective increase of 1.4 yuan in the money supply, rather than 4 yuan in the absence of neutralization. In the face of rapid growth of foreign reserves, neutralization in China is becoming increasingly difficult, consistent with Mundell’s hypothesis.

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