The empirical section of this paper is based on conintegration analysis of econometrics. First, whether the nominal exchange rate of RMB accords with purchasing power parity is tested. Secondly, the paper establishes the conintegration equation of RMB's real effective exchange rate and estimates the equilibrium exchange rate using Hodrick-Prscott filter method. According to equilibrium exchange rate estimated, the paper analyzes the disequilibrium degree of RMB's exchange rate. Finally, on the basis of estimated coinintegration equation of RMB's exchange rate to US dollar, the paper establishes an error correction equation. According to the two equations, we can analyze the long-term determinative and short-term influential factors to RMB's exchange rate. At the same time, the paper analyzes the shortcomings of the current regime of RMB's exchange rate in the new economic background, especially after China's accession to WTO and puts forward some advice to the orientation, the destination and steps of the reforms. |