Research On The Impact Of Currency Appreciation On The Economic Growth

Since the sixties and seventies of the 20 th century,Japan and Germ any experienced the high rapid econom ic growth in almost the same historical period.In the face of the currency appreciation,the two countries adopted the different policy responses,brings a distinct im pact on the economies in both countries.S ince China’s exchange rate system reform in 2005,the exchange rate system became a managed floating system,which has lead to a appr eciation of the RMB.The de velopment of RMB has some similarities with Japanese Yen and Deutsche Mark,but there are also some differences.First we reviewed the econom ic data of Japan Germany and China during the currency appreciation.We found that for a long tim e the currency appreciation to Japan brought a serious of the bubble economy and the subsequent economic downturn.By contrast,Germany maintained economic growth and financial stability in the currency appreciation period by comparison.Chinese actual GDP growth rate began to decline from 2012 with inflation.Does the appreciation of the currency have a positive or negative effect on economic growth? Through the empirical analysis,and the Granger test on Japanese Yen、Deutsche Mark and RMB between actual effective exchange rate exchange rate change and economic growth relations.Analysis proves that there is no sufficient evidence to show that there is a significant mutual influence relations between nominal exchange rate and economic growth rate.But after the lag,the real effective exchange rate of China and Japan has an im pact on the econom ic growth rate.Finally,according to the comparison results,we found out the difference between Japanese Yen、Deutsche Mark and RMB during the appreciation for their econom ic impact by com paring the sim ilarities and differences.The article co mbined with China’s national conditions,given the policy recommendations.