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

Table 2

Fluctuations of US dollar exchange rate.

	Capital (billion)	GDP (billions)	Increment of GDP (billion)	Ratio of output to capital (σ)
1995		6321.69
1996	2291.35	7416.36	1094.67	0.478
1997	2494.11	8165.85	749.49	0.301
1998	2840.62	8653.16	487.31	0.172
1999	2985.47	9096.41	443.25	0.148
2000	3291.77	9874.90	778.49	0.236
2001	3721.35	10897.24	1022.34	0.275
2002	4349.99	12035.03	1137.79	0.262
2003	5556.66	13639.88	1604.85	0.289
2004	7047.74	16028.04	2388.16	0.339
2005	8877.36	18869.21	2841.17	0.320
2006	10999.82	22165.13	3295.92	0.300
2007	13732.39	26309.38	4144.25	0.302
2008	17229.11	30685.98	4376.6	0.254
Average				0.283

Source: Chinese statistical abstract 2009.