RMB Exchange Rate And Social Welfare Effects Of Tariff Adjustments: Based On The New Open Economy Macroeconomics Research

After entering the WTO,China has earnestly fulfilled the commitment of tariff reduction and the overall level of tariffs has been falling down from 15.3%in 2001 to 9.8%in 2008. During this period,China has carried out a number of tariff adjustment measures for tariff structure optimization,which also have a great impact on social welfare.In respect of the tariff adjustments,this paper focuses on analysing the RMB exchange rate and social welfare effects of tariff adjustments,using Exchange Rate Dynamics Redux Model based on the new open macroeconomic framework,which much clearly shows that the tariff adjustments have an impact on the economy by the transmission mechanism.Then,combined with the reality of tariff concessions after entering the WTO,this paper takes empirical analysis on the influence for the RMB exchange rate and the national social welfare which brings by tariff adjustments.New analytical methods of New Open Economy Macroeconomics,which absorbs the micro-economic basis,such as the nominal price rigidity and non-perfect competition,are closer to economy reality.Through this new research method,much research of international economic issues has been further developped.Therefore,thispaper use the method to establish the model of macroeconomic effects brings by tariff adjustments,and there are many detailed derivations and explanations of the tariff,exchange rate and the welfare in the relationship.Study shows that since China's accession to the WTO,tariff concessions have had an impact on the RMB exchange rate,and to some extent,it also has weakened inflation and promoted the growth of social welfare.And the tariff concessions' welfare effects is more intuitive,which means tariff concessions could jointly promote the development of the world economy by increasing domestic consumption and output,the world consumption and output. In addition,the optimization model based on micro-macro-economy trend shows that the tariff policy,monetary policy and exchange rate policy can be a combination for better macro-control services.Thus,the policy recommendations in this paper can be that we can combine tariff policy to deepen the macroeconomic policy's coordination,and our country can get out of the plight of the national economy,maintain steady development and has an effective boycott of trade protectionism in the financial crisis.