RMB Exchange Rate Changes In The Balasha

At the beginning of the21st century, because of the network economic bubble burst in2001and Subprime crisis in2007, the world economy, especially the United States economy has depressed. At the same time, China’s economic remained high growth, well above the world average growth rate and some of the major industrial countries and became America’s major surplus countries by surpassed Japan in2000. The subprime crisis originated in the U.S. in2008and evolved into a global financial crisis. Although the China’s economic growth rate dropped significantly, but was still higher than other countries, especially continued to maintain large current account surpluses in trade. Thus, RMB plays an increasingly important position in the process of internationalization and RMB issue has become increasingly significant.Based on the above reasons, a large number of research literature on the yuan issue appeared since the21st century. Among all the studies about the RMB exchange rate, the Balassa-Samuelson effect dominated the current analysis movements, and extend the appreciation pressure of RMB. Departure from international experience, a country’s currency usually maintained appreciation trend in the course of economy’s rapid growth. The Balassa-Samuelson effect indicates that revenue growth will lead to the appreciation of the real exchange rate, and the nominal exchange rate also underestimated on the low income countries. Therefore, this article will research the real exchange rate between China and American under the Balassa-samuelson effect and their impact factors.The paper consists of six parts:Part one elaborates the status of the internationalization of RMB; Part two expounds the current scholars research on the exchange rate; Part three discuss the basic theory of Balassa-Samuelson effect; Part four and Part five study the Balassa-Samuelson effect combined with the real exchange rate and influencing factors; finally we state the research conclusion and give some suggestions.