Analysis Of Impact Of RMB Exchange Rate Change On Price Level

Exchange rate is an important variable in our economical lives. With the amalgamation of our national economy and world economy increasingly, exchange rate,as currency price, has close relationship with our lives, at the same time, the change of exchange rate can also have great impacts on healthy operation of economy.It influences the transnational investment decision-making of industrial and commercial enterprices, it also influences the operation decision of financial institution. With the development of credical economy and signal economy, with the globalization of world economy and finance, with the increasing perfection of socialist market-economy system, with the speeding up of the progress of exchange rate's market-oriented reform, the impact of exchange rate on economy becomes more and more impressive.It has become an important economical index which reflects marcoeconomical situation of one nation. Many countries in the world uses exchange rate policy to regulate own economy frequently. Exchange rate policy has also become main mothod of regulating demand and supply of money and national economy, and now it's playing more and more important role.Since 1997, People's Bank of China has practiced impressive depreciation of RMB, which played positive effects to unfavorable balance of trade and national economic growth. So, there is important theoretical significance and practical value of using exchange rate policy correctly, and analysing of impact exchange rate on national economy exactly, especially on price level.The essay analyzes relationship between RMB nominal effective exchange rate and price level basing on existing literature, and uses econometrics test according to datas in 1979-2001 in order to find relativity in nominal effective exchange rate, nominal loan rate and our national price level, and then gives suggestions which have based the situation of exchange rate fluctuation and our national exchange rate policy since reform and opening up and aimed to current exchange rate level and macroeconomical background.The essay is divided into five parts.In the first part, there are the titles selected for publication background, significance and domestic and foreign research survey. This part mainly introduces three...