On the contrary, the capital flow has an expanding effect on the domestic money supply, which increase the price level.

相反，资本流入对国内货币供应量有扩张效应，使价格总水平上升。

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In other words, a central bank trying to prop up its currency must allow its sales of foreign exchange to reduce the domestic money supply.

换一句话说，央行要如果要支持它的汇率，必须容许出售外汇以降低国内的货币供应。

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This dissertation doesn't simply put current account and capital account together in analyzing the influences of international payments on the domestic money supply.

在分析国际收支对国内货币供给的影响问题，不能将经常项目、资本和金融项目简单相加。

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By expanding the domestic money supply, foreign inflows can fuel inflation.

ECONOMIST: Exchange rates

The second was the huge capital inflows being significantly "understerilized" (insufficiently absorbed by the central bank) that swelled domestic money supply and credit and created China's very own asset bubbles.

FORBES: Magazine Article

On the other hand, the PBOC is conducting aggressive open market purchases of dollars to hold down their yuan, which is naturally increasing their domestic money supply and offsetting their tightening measures.

FORBES: Where Chinese And Americans Agree: An Irrational Fear Of The Fed