Abstract:

The factors that affect optimal international reserves and equations vary with the change of international financial circumstances This article is to discuss and test the factors that effect international reserves in the change with the data in China and the econometric means Also, the logic followed by the theory in question is discussed It is concluded that the choice of the factors affects the optimal international reserves based on the buffer stocks and the money demand function under the closed economy

Key words: internationalreserves, measurefactor, moneydemandfunction, bufferstocks

CLC Number: 

• F8203