Statistical Research On Regulation Mechanism Of RMB’s Internal And External Value Conflicts

Generally speaking，the value of currency has two forms--the internal value and externalvalue．The classical theory of purchasing power parity (PPP) believes that，a country’scurrency changes in the internal value and external value changes should be consistent，atleast in the same direction，namely，the internal value of currency devaluated，its externalvalue also should depreciate，and vice versa．However，the practice of our country in recentyears shows that，the trend of internal and external value towards to the conflict．The RMBtend to appreciate in internal value and devaluate in domestic market constantly，namely theRMB has shown a phenomenon of“external appreciation and internal devaluation”，thisphenomenon apparently abhorrent from the principles of the classic economics．The existenceof this phenomenon must be affect the national economy’s stable development，hinder theeconomic development macroeconomic regulation and control．Therefore，to explore theforming and regulating mechanism of internal and external value conflict，find out theeffective policy path，will have important theoretical significance and practical value formaintaining our country’s stable macroeconomic development．Firstly，based on the theory of purchasing-power parity (PPP) perspective，this paperredefine the internal value and external value of RMB，and RMB’s internal and external valueconflicts．Secondly，this paper improved and extended the balassa-samuelson effect model，with the introduction of price elasticity of monetary analysis method，and combined with thedual economic structure in China’s special national conditions，so as to build formationmechanism model of the internal value and external value，and regulating mechanism modelof the RMB’s internal and external value conflicts．Finally，this paper respectively empiricallytested and analysised the three models based on the measurement method．The main conclusions of this paper as follows:1.Based on the definition of the RMB’sinternal and external value conflicts，the description of the status quo，as well as its existenceof inspection，show that the RMB’s internal and external value conflicts phenomenon doesexist in our country and its existence and development is bound to hinder the smoothly andhealthy development of our country’s economy．2.The empirical analysis on formationmechanism of the RMB’s internal and external value showed that the internal value changed mainly by sectors’ relative labor productivitys and sectors’ relative wages．the internal valuechanged mainly by relative money supply，relative output，relative interest rate，relativerelative labor productivity．3. The empirical analysis on regulation mechanism of the RMB’sinside and outside value conflict showed that，the growth rate of our coutry’s relative laborproductivity was the biggest influence for the formation of the internal and external valueconflict，the growth rate of sectors’ relative wage，the growth rate of relative money supply，the growth rate of relative output，the growth rate of China and the US’ relative relativeproductivity，these indicators affected the internal and external value conflicts almost at thesame size，the influence of the growth rate of relative rate is the minimum．...