Determine The Basic Economic Variables Of The Rmb Exchange Rate And Its Impact

Economic and financial globalization represents the objective trend of current global economic development. The reform of RMB exchange rate system is no longer the own thing of the Chinese Government, moreover, it relates to the international trade, finance and politics. The reform of RMB exchange rate system and the exchange rate changes itself will significantly effect the economies of the United States, Europe and Asia. However, as China will play a more and more important role in the world economy, the influence will become increasingly large and deep.Started by the set exchange rate system, this thesis elucidates the definition, classification and developments of exchange rate regime choice theory, and then describes the evolution of the RMB exchange rate regime and characteristics in various historical periods. Next, combining with the new hot spots of China's economic development under the economic globalization, this paper also analyzes the effect of RMB revalue on the national economy and daily life. Then linking the summary of the classic western exchange rate theory with the economic variables by investigating the exchange rate determination, the basic economic variables which impact the exchange rate changes are selected and analyzed. Through empirical analysis of the selected economic variables, the important role of psychological impact of the RMB exchange rate are investigated and tested among the numerous economic factors.