Rmb Exchange Rate And Asset Price Bubbles Relationship Research,

This paper starts from the introduction of background of the RMB's appreciation;it identifies the meaning of RMB' appreciation,and analyses the trend of it.Based on the background of RMB's appreciation,this paper research on the relationship between RMB's appreciation and the asset price bubble.RMB's appreciation can lead to the asset price bubble by two ways:one is by sterilized intervention of the country;the other is by the international speculative capital.This paper combines the theory and empirical research method primarily.During the analysis of the relationship of sterilized intervention policy and the asset price bubble,the author provides concept of the "incomplete sterilized intervention",that means when the foreign exchange is sterilized intervened,we should get back proper perception of fluency and control the providing level of fundamental money based on the condition of economy development and the aim of money policy.The author construct a complete leading process of RMB's appreciation to the asset price bubble:the pressure of appreciation——incomplete sterilized intervention——excessive liquidity——the asset price bubble.During the analysis of the relationship of the way that international speculative capital gains profit and the asset price bubble,the paper construct an international leading process of RMB's appreciation to the asset price bubble:the expectation of appreciation——international speculative capital gains profit——the asset price bubble.After the analysis of two leading ways,this paper does empirical research of the stock market and estate market and gets two conclusions that there are bubbles in both two markets.Then it analysis the damage the asset bubble might bring.Finally,the author makes a conclusion of this paper and provides suggestions to the policies.