Rmb Exchange Rate Fluctuations Affect The Empirical Research On Inflation

Along with our country economy the deepening of the level of opening in international trade, exchange rate is playing more and more important regulatory leverage, RMB involvement in the international economy in gradually expand the range. China's exchange rate market has experienced three major reforms, until 2005 establish basic perfect reaction to the market comparison of import and export with reference to a basket of currencies, single managed floating exchange rate system. 2005 to 2006, the RMB exchange rate volatility and yuan reform began to appear before more obvious compared the fluctuation of fluctuation continues to increase speed. In 2007, the RMB exchange rate fluctuations after more significant, and mainly with appreciation, fluctuation direction succession breakthrough 8.0, 7.5, 7 etc and enter 6.5 times repeated China pass and integer record high since execute floating rate. Exchange rate on import and export trade balance, domestic price level, effects of international capital flows, foreign currency reserves, influence of domestic employment of a country, and the national income and resource allocation are significant impact on existing comparison, which is closely related with people's living level of domestic price level is the influence of that inflation rate. China currency volatility increases in recent years while the domestic price level the fluctuation significantly increased, but also because of currency fluctuations through a variety of approaches to transfer to the domestic market, and thereby cause the price level between the possible changes, some correlations. This article through to exchange rate at home and abroad with inflation research outcome and the relationship between the exchange transfer effect theory of RMB exchange rate and inflation of more closely with cointegration test primarily empirical analysis, and draw the conclusion is: RMB exchange rate in statistical significance in China constitutes inflation occurs factor, but CPI and because of the fluctuation of exchange rate by themselves the effects of the larger, this kind of influence as time increases in the long term stable, explain our country of the yuan against the dollar exchange rate of inflation has weak unidirectional lead role. Finally, according to the exchange rate and inflation relationship is concluded to policy Suggestions: the four strengthen to control inflation, reduce inflation expectations; To speed up financial capital account liberalization, and actively developing foreign exchange market; Positive reform price adjustment mechanism; Strengthen independent monetary policy.