The Real Effective Exchange Rate Index At Its Trade Balance

Exchange rate is a very important tool to indicate the price between different kinds of money; it plays important part in the international trade and other things. But only consider a kind of exchange rate is not enough, we should pay attention to more and calculate the whole affection.In this paper I overview others'research and analyze the cause and difference among these papers, there are two main parts in this paper, the first part, I use different statistical methods to organize the exchange rate index, there are a few requests, it must coordinate to the theories, what's more, it can be explained by the actual condition. In the paper, it considers how to determinate the base time, how to choose the weight, how to select a better method to organize the index. Then, it analyze the main reason of choosing the method of the effective exchange rate index, one is the weight, the other is the individual exchange rate index, the two are put in different situation then it can be discriminated, then, the index is organized by this way. At last, the paper does as the former method to organize the real effective exchange rate index, what's more, the index shows the process and the trend of the effective exchange rate, the trend indicate: generally speaking, RMB effective exchange rate is stable and have a small increasing trend. The paper analyze the affection of the main money, it can help the government to make the policy of exchange rate.The second part, it analyzes the elasticity between the export and the exchange rate, the elasticity between the import and the exchange rate. In this paper, it use two important varies to make a equation of export, one is the effective exchange rate, the other is GDP which is excluded the affection of price. According to the national condition, the export and the import of the foreign investment enterprise is an important part of the whole export and import, but the direct foreign investment and the GDP have the same trend, they are so close that it is hard to differentiate the...