Study On The Efficiency Of RMB Devaluation Policy

With the formation of world economic integration and financial market globalization, especially on the background of China entry into World Trade Organization, Chinese economic development has totally melted into the world economy, with deep open to the outside. In the open economy, goods, capital and human resource are transformed in a lager scale. Countries are not independent any more, the outer balance come into beings. When international balance of payment is brought into macro-adjustment and control mechanism, the economy policy of government should make some change for that, which is from realization of unilateral inter-balance target to that of internal and external balance, and macro-economy is complex and difficult to control. According to "Tinbergen Principle", the same number of dependent and efficient policy instruments are needed for some number policy targets to realize. So with the development of Chinese open to outside world, exchange rate of RMB must keep dependent and efficient.The paper studies on the efficiency of RMB devaluation policy, with emphasis on the efficiency of RMB devaluation policy in improving revenue and expenditure of trade and attracting direct investment between 1981 and 2003. As to the methods, they are normative and quantitative integration, with theoretical and quantitative analysis. The paper first overviews the relevant theories, second, deeply analyzes relations between macro-economy targets, and third, expounds the outstanding position of improving revenue and expenditure of trade and attracting direct investment to reach internal and external balance in the real Chinese situation, and fourth, builds the possible conductive ways on the base of analysis. For all above, the theoretical analysis structure is formed. And then, the efficiency of RMB devaluation policy in improving trade payment and attracting direct investment is quantitative tested respectively. The result that RMB devaluation policy is efficient as a whole but far to enough comes out on the data from the tests. At last, the paper seeks for the reasons of the insufficiency, and raises some advice for strengthen the efficiency of RMB...