A New Cost-Profit Model for Measuring the Optimal Scale of China’s Foreign Exchange Reserve

Figure 1

(a) The interest rate of Euro-dollar’s 3-month deposit from 2000 to 2008. The horizontal line is the averaged interest rate 3.574% (resource: statistical data of the US Federal Reserve Bank). (b) The GDP growth rate of the US (solid-line) and Eurozone (dash-line) (unit: %) (source: World Economic Outlook, IMF).

(a)

(b)