The Research On The Equilibrium Exchange Rate And The Macroeconomic Of China

From the year of 2002,Chinese RMB Yuan have faced up with the heavy pressure of revaluation.Through the system of the exchange rate had been changed monstrously since the Reformation and Opening in China. Generally speaking, these changes were much successful. They had contributed a lot to the proceedings of the Reformation and Opening and the entering of world econometric system. there are still some blemishes existing in the formation mechanism of RMB exchange rate.The out of balance in the RMB exchange rate was mainly discussed in this paper.I try to find the relation of the equilibrium exchange rate and the macroeconomic of china.in the end ,I will give the advices on the mechanism of RMB exchange rate.The existing exchange rate system has enlarged the gap in current account. The current account in China has been kept a huge sum of surplus constantly and it is tend to be enlarged gradually. The constant current account surplus is favorable to acquiring the foreign exchange resources. It elevate Chinese foreign payoff ability and against the risk. It is also favorable to improving employments and economic growth. But on the other side, it also brings about a series of serious problems. It reduces the household welfare, domestic consumer, relative underinvestment, much more pressure of international trade protectionism,over resource allocation in the department of foreign economic, andlagging development of non trade department including service industry.The increment of foreign exchange reserves in China has enlarged thedifficulty to monetary policy and the storage management and it is unfavorable to the adjustment of the global economic balance. From the discussion that how exchange rate fluctuating affects the international trade, we can see that RMB appreciation can increase import, reduce export, and realize the current account in a basic balance. It is favorable to the healthy of economic growth. Transfer to nominal rate of exchange positively and gain ground on the balance rate. Reduce the non-FDI capitals afflux. Complete the system of supervisory control to non-FDI. Reclaim economic twists. To realize the transformation of macroeconomic regulations.