Study On The Inlfuence Of RMB Exchange Rate Changes To China’s Relevant Conomic Variables

Having reformed and opened up for thirty-two years,our economic develops repidlythrough the strategy of “going out”and “bring in”made by our government,under thesurounding of economic globalization.Foreign trade works as the engine of economic growthin China,and the RMB exchange rate plays a pivotal role in this process.Obviously theexchange rate links domestic and international economic,it,s change will directly affect thelocal country’s macro-economy.The real exchange rate of the yuan against the U.S. dollar experienced the process ofdepreciation and then appreciation in the past32years,during which the turningpointhappened in1994,when the RMB exchange rate reformed. Given the close relationshipbetween the exchange rate and the national economy, many studies have explored this issue,especially after China’s exchange rate reform on July21,2005, the RMB exchange ratebegain refering to a basket of currencies with a managed float.Due to pressure from a hugetrade surplus and an unprecedented scale of foreign exchange reserves as well as greaterpressure from Europe and the United States.These are all making the RMB exchange rate andChina’s economic growth gain more scholars attention.In this paper, theoretical research.qualitative and quantitative research are fullyintegrated with each other,and he author conducts a study on the impact of the real exchangerate of the RMB against the U.S. dollar to China’s real economic growth. This articlesummarizes how the exchange rate impact on economic growth, and then makes analysis ofthe general theory. On the basis of this theory analysis,the author woks with series data from1978to2010,talking qbout the assue from the many aspects. Thenthe author works out theempirical study, and quantitative analysis methods used in this article are discribed in the thirdsection.Then the author uses the EVIEWS software to test the cointegration relationshipbetween relevant data, in order to examine its long-term stable relationship, and then analyzesthe Granger causality. finally,the generalized impulse response function of the RMB exchangerate, on economic growth in the short and long term. On the basis of the above theoreticalanalysis and empirical analysis, this paper explores the causes of the previous analysis resultsand gives many suggestions in order to decrease the negative effect of the RMB exchange ratechanges on China’s economic growth as far as possible and promote China’s economicdevelopment.