Statistics Of The RMB Exchange Rate Pass-through Effect

With the gradual upgrading of China’s economic openness and the status of international influence, one of the RMB exchange rate as China’s most important foreign economic variables, and its importance will become more a matter of concern, that the RMB exchange rate is appropriate or not, plays a very important role on China’s economic and socialharmonious development, especially on China’s economy to make an important contribution to the household sector and corporate sector, to explore the impact of the RMB exchange rate fluctuations on its becoming more and more necessary.Since2001, China joined the World Trade Organization (WTO), the RMB exchange rate pass-through effect has been the focus of attention in the domestic and international politics, academia, focused on mainly the price effect and the inflationary effects of two aspects, while the developed Westerncountries require the voice of the RMB exchange rate appreciation has never been interrupted since2002, in this real context, on July21,2005, our government implemented a floating exchange rate system reform based on market supply and demand. The appreciation of the RMB is very significantly after the reform, especially in the recent,"Two meetings"was held successfully in the background that our party and country to successful financial crisis in2008, the people’s bank of China governor zhou xiaochuan said the appreciation of the renminbi is over, depending on the relation between market supply and demand, the exchange rate of the yuan more and more close to the equilibrium. At the same time, China’s rising prices, inflation phenomenon is obvious. Wen jiabao focused on the people well-being and emphasized on people’s livelihood in construction in the2012years the government work report, and put forward the CPI expected controlled in4%less than, the higher inflation targets for annual macro regulation and price reform obligate space.In real life, people tend to focus on the level of high and low price, as the saying goes "Food is the paramount necessity of the people", they first think about is that whether you are hungry or not, care about that if their own hands money can buy more things, although the government has introduced some measures, to a certain extent, control the price guarantee the the interests of the people, but also can not cover the rising prices of the facts. From the manufacturer perspective, they make important decisions in order to pursue their own profit maximization, even if the financial crisis of a tornado struck China making their interests threatened, but they still idea, work hard to reduce the effect. Thus, we can’t help but to ask, What are the major decision variables on China’s renminbi exchange rate?What are the influence index in daily life of the residents and enterprises and the production? What are those? Does the volatility of the party to the other party can bring about change? Which is a bigger impact when the exchange rate to residents and enterprises?It is worth noting that, the concern of most politicians and scholars is the RMB exchange rate of net fluctuation on a problem of the influence, but often ignored the problem changes in the RMB exchange rate will produce the reaction, in view of this, this article will be the first review of related literatures, this paper analyzes the place of its innovation and improvement of place, with emphasis on the RMB exchange rate transmission mechanism of qualitative analysis; And then, through the establishment of utility maximization model and the profit function model of analysis on the main variables residents and enterprises index, so as to establish the corresponding index system, and on the basis, constructing the VAR model on the RMB exchange rate pass-through effectt; Again, use data sources of data variables is an empirical study of preprocessing before, and using measurement analysis method of unit root test, cointegration theory, VAR model and error correction model for empirical research, the results showed that the RMB exchange rate fluctuations on the influence of the residents is bigger than influence on the enterprise, Combined with the empirical analysis results and the second chapter of the exchange rate transmission mechanism analysizing in import price under the influence factors of the residents and enterprises related index variation on the reaction of RMB exchange rate. The article put forward finallyin this paper the deficiency and future outlook of the research.