Analysis of factors influencing policy Sterilization in China

Abstract

An opened economy is exposed to a number of undesirable effects, and that would damage the economy . So, some economic policies seek to address these effects, particularly monetary policy ; through sterilization policy , it can make compensation for all or part of the changes that affect the amount of foreign exchange reserves, due to the leaving or flowing of capital towards the economy. that it can be achieved through the sterilization of unwanted effect of access to the components of the national economy, through open market operations, as part of the attempt to address those effects through sterilized and effective monetary policy, through supplement and enhance the ability of determinants of that sterilized policy, by monetary policy itself in a suitable environment works in which an efficient monetary policy supportive of economic growth. So, the study tends to determine the factor influencing the sterilization policy, taken China as a case study, because of the breadth and diversity of Chinese economy , it is dramatic growth, and it is capacity to attract foreign capital.