Study The Effect Of RMB Internationalization On China's Money Supply

According to statistical data of People's Bank of China,until the end of 2015,the balance of broad money supply(M2)in China reached 139.23 trillion and has been remaining the high-speed growth speed.The change of money supply is the intermediate objective of macro-economic stability and monetary policy implementation in China.RMB internationalization nowadays has acquired the staging effects,but it affects effectiveness and independence of macro-economic system and money supply policy in China,while creating benefits.The author studies influences of RMB internationalization on Chinese money supply and it has the important theoretical and realistic significance.Firstly,the author reviews relevant theory of currency internationalization and money supply,analyzes internal correlation between RMB internationalization and money supply in China,and reveals influence mechanism of RMB internationalization through money multiplier and supply curves on Chinese money supply.Secondly,the author analyzes status of RMB internationalization and money supply in China.Then,in order to better study specific influences of RMB internationalization on money supply,the author uses overseas RMB inventory to stand for RMB internationalization on the basis of previous studies,considers the year of 2011 when RMB internationalization was implemented comprehensively as the demarcation point,and calculates overseas RMB inventory from 2001 to 2015 by using an indirect measurement method and applying relevant data from 1999 to 2010 in China.Based on it,empirical test is implemented on overseas RMB inventory and money supply,finding that overseas RMB inventory exactly will impact money supply.Finally,the author draws a conclusion that RMB internationalization will affect money supply in China.By combining with the study and physical truth,the author proposes relevant policy suggestion under the circumstance of deepening RMB international ization from pushing approach of RMB internationalization,statistical monitoring in China and monetary policy regulation.