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The Demand for International Reserves in China: An ECM Model with Domestic Monetary Disequilibrium.
- Source :
- Economica; Aug94, Vol. 61 Issue 243, p379-397, 19p, 4 Charts, 6 Graphs
- Publication Year :
- 1994
-
Abstract
- This paper employs a version of the error correction model to investigate the demand for international reserves in a typical planned economy, China. Disturbances from the domestic markets are considered by incorporating the monetary disequilibrium into the model. Our main conclusions are that: (1) reserve holdings in China have maintained a long-run relationship and a stable dynamic relationship with several determinants since the 1950s, confirming China's prudential foreign reserve policy; and (2) monetary disequilibrium has significant short-run effects on reserve holdings, reflecting the authorities' 'general balancing' policy in their annual planning. [ABSTRACT FROM AUTHOR]
- Subjects :
- RESERVES (Accounting)
DOMESTIC markets
ECONOMIC equilibrium
ECONOMICS
Subjects
Details
- Language :
- English
- ISSN :
- 00130427
- Volume :
- 61
- Issue :
- 243
- Database :
- Complementary Index
- Journal :
- Economica
- Publication Type :
- Academic Journal
- Accession number :
- 9501135530
- Full Text :
- https://doi.org/10.2307/2554622