Study On Reasons Of RMB Currency Value Differences At Home And Abroad After The Exchange Reform

Since the reform of RMB exchange rate in July2005, our country has been appeared two prominent economic phenomenon:one is the RMB exchange rate has increased slowly, especially to the dollar has been consistently, small revaluation, by December2011, the cumulative appreciation has30%; the other is that domestic prices from rising structural evolution of the price level to comprehensive inflation, also the purchasing power of the RMB in domestic lower and lower. This seemingly against economic law phenomenon caused the domestic and foreign scholars the universal attention.To face such a special economic phenomenon, this paper in the previous comprehensive of scholars both at home and abroad based on the research results, first two of influence inflation and the appreciation of the RMB each factor of theoretical analysis, and then use ADL model of the RMB exchange rate to influence factors of empirical analysis and inspection, VAR model are used to all the factors affect inflation of empirical analysis and inspection, finally draw the conclusion of this paper:Among the factors that affect inflation, inflation expectations and foreign exchange reserves are the first two correlations with inflation; Among the factors that affect the RMB exchange rate, foreign exchange reserves and monetary circulation are the first two strongest correlations with appreciation of the RMB to USD. Models cannot explain the fundamental reasons of RMB’s revaluation abroad and depreciation at home, therefore this paper argues that the value’s deviation of RMB at home and abroad comes from two reasons:first is internal and external economic imbalance, and second is the conflict of international political pressure and RMB internationalization.