Exchange Rate Fluctuations Affect The Price Mechanism And Empirical Research

In recent years, with high economic growth, it may speed up the process of urbanization, and China's per capita income of urban residents continues to increase, supporting real estate prices are raising, as well as, following with it, there is increasing appreciation of the RMB. Southeast Asian financial crisis, China's domestic price level of negative trends, there has been deflation, depreciation of the RMB is facing pressure in this situation, the Chinese government to implement proactive fiscal and monetary policies to expand domestic demand and insist on not devaluing the RMB exchange rate, keeping the stable situation. In 2005, for our government to consider all aspects, from July 21 to start the implementation of the exchange rate reform, the implementation based on market supply and demand with reference to a basket of currencies, managed floating exchange rate system. Although the change to the RMB exchange rate to appreciate a total of more than 15%, but in recent years, China's international trade is a huge trade surplus, China's international trade of our fiscal imbalance, the rapid increase in foreign exchange reserves, leading to the RMB being still facing strong pressure to appreciate. At home and abroad, on the expected appreciation of the RMB is strong, offshore funds are through various channels into China one after another, and transferred to the mainland capital market trends.With the hot spots, this paper is based on international finance, economics and the economics of real estate disciplines, such as general mechanism of the RMB exchange rate fluctuations from the real estate prices and the impact of factors, starting from theory, in-depth analysis of the impact of the RMB exchange rate fluctuations in real estate The price means the process and then, finally, the money supply within the framework of the use of econometric methods of the RMB real effective exchange rate and nominal exchange rate of China's real estate prices and the relationship between the two analyzed. The results show that the empirical analysis of the RMB exchange rate fluctuations did have an impact on real estate prices, and is in line with the theoretical analysis.