Lenient Entry, Stringent Exit: A Political Economy of Foreign Exchange Reserve Demand and Policy in the People's Republic of China
(2017) EKHR81 20171Department of Economic History
- Abstract
- This thesis explores the links between China’s demand for foreign exchange reserves and the political economy aspects of China’s monetary policy framework since the start of reforms in 1978. In a single-country approach focused on China, this study combines an assessment of the politico-economic factors that may have influenced China’s demand for foreign exchange reserves with a cointegration analysis of the macroeconomic determinants of the demand for reserves. The assessment suggests that China’s monetary policy framework has been geared to accomplish the government’s long-lived goal of high export- and investment-led growth, at the expense of the wealth of Chinese households. The empirical findings support the premise of a strong... (More)
- This thesis explores the links between China’s demand for foreign exchange reserves and the political economy aspects of China’s monetary policy framework since the start of reforms in 1978. In a single-country approach focused on China, this study combines an assessment of the politico-economic factors that may have influenced China’s demand for foreign exchange reserves with a cointegration analysis of the macroeconomic determinants of the demand for reserves. The assessment suggests that China’s monetary policy framework has been geared to accomplish the government’s long-lived goal of high export- and investment-led growth, at the expense of the wealth of Chinese households. The empirical findings support the premise of a strong connection between China’s growth model and the demand for international reserves, which is noticed by a dominance of current and capital account considerations in China’s short- and long-term demand for foreign exchange reserves. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8923947
- author
- Oskam, Michiel LU
- supervisor
- organization
- course
- EKHR81 20171
- year
- 2017
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Foreign exchange reserves, China, political economy, monetary policy, reserve demand
- language
- English
- id
- 8923947
- date added to LUP
- 2017-09-07 12:55:11
- date last changed
- 2017-09-07 12:55:11
@misc{8923947, abstract = {{This thesis explores the links between China’s demand for foreign exchange reserves and the political economy aspects of China’s monetary policy framework since the start of reforms in 1978. In a single-country approach focused on China, this study combines an assessment of the politico-economic factors that may have influenced China’s demand for foreign exchange reserves with a cointegration analysis of the macroeconomic determinants of the demand for reserves. The assessment suggests that China’s monetary policy framework has been geared to accomplish the government’s long-lived goal of high export- and investment-led growth, at the expense of the wealth of Chinese households. The empirical findings support the premise of a strong connection between China’s growth model and the demand for international reserves, which is noticed by a dominance of current and capital account considerations in China’s short- and long-term demand for foreign exchange reserves.}}, author = {{Oskam, Michiel}}, language = {{eng}}, note = {{Student Paper}}, title = {{Lenient Entry, Stringent Exit: A Political Economy of Foreign Exchange Reserve Demand and Policy in the People's Republic of China}}, year = {{2017}}, }