We can use low interest rates and low reserve ratio to increase the domestic money supply. In the foreign exchange market, the increase of money supply will lead to the depreciation of local currency against foreign currency, which is conducive to exports, so it is more likely to lead to a trade surplus. Increase imports, expand investment and promote sustained economic growth. Importing some foreign goods and services can improve people's living standards and increase social welfare.
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Trade surplus means that within a certain unit time (usually calculated in years), two trading parties buy and sell various commodities, import and export each other. The export amount of Party A is larger than that of Party B, or the import amount of Party A is smaller than that of Party B, and the difference between them is called Party A's trade surplus and Party B's trade deficit ... Generally speaking, in terms of the interests of both trading parties, the one who gets the trade surplus is the one who takes advantage, and the one who gets the trade deficit is the one who suffers.