Rmb Real Exchange Rate Appreciation Discussed

In an open economy, the real exchange rate adjustment is important to external economic balance, particularly for countries with rapid economic growth. The Balassa-Samuelson hypothesis is undoubtedly the basic theory about the effect of rapid economic growth of countries on the real exchange rate trends in long-term. From the viewpoint of the real exchange rate of RMB, in the current rapid economic growth in China, real economy is more practical. This paper takes China's special dual economic structure into the Balassa-Samuelson model, selects the appropriate indicators of China's national conditions of variables to a more scientific interpretation the existence of the real exchange rate of RMB Balassa-Samuelson effect, test showed that the city's unlimited surplus labor transfer speed the have a negative impact on actual exchange rate change, furthermore, In addition, exchange rate reform in 2005 also made the real exchange rate more flexible. Due to the aging of our population trends, limited supply has released the pressure that RMB nominal exchange rate appreciation put on the export sector, and regional economic differences could alleviate the exchange rate impact on the industry, therefore, RMB appreciation could contribute to the domestic economic restructuring. As a result, the real exchange rate appreciation plays a complementary role in economic restructuring and accelerate the distribution of income, thus Balassa-Samuelson effect in China has a more rational interpretation. Based on the status of the labor supply, I give some proposals on the way of RMB appreciation and balance between domestic and international economy.