Effects Of RMB Appreciation On The Chinese Macro-economy

Since July 2005,the adjustment of RMB exchange rate, RMB Appreciation has been an important question and it will effect the import,export and FDI etc and at last influence the fundmental economic situation such as GDP,consumption and investment.Assessment of the appreciation of RMB will stabilize and improve the economy.A Computable General Equilibrium (CGE) is constructed to evaluate quantitatively the impact of the revaluation of Chinese Renminbi on China's economy.The CGE model constructed in the study is estimated using calibration procedure coupled with econometric estimation for key parameters.In the article,we assumptions the RMB appreciation 5%,10%,20%,30%.The result indicated that the appreciation of RMB exchange rate will promote the import,family saving and custom,but it neggative for expot,real GDP,investment and family comsuption.At the same time,appreciation of RMB exchange rate will influence many industries,and the extent of the impacts will depends on the different characteristics of the industries.The general conclusion in this study is that large appreciation of RMB currency is quite disadvantage on China's macro-economy,the small revaluation is acceptable in the meaning of its effect on socio-economy.At last, based on the CGE model and the experiment of other countise,made some advise.