Compared the Differential Effects on Nominal Interest Rate before and After RMB Ezchange Rate Elasticity Broaden
With the economy increasing continuously and the further opening to the world, the reform of RMB exchange rate targeted at broadening its elasticity. It is essential to research whether interest rate policy appears to have been much mores sensitive to the RMB exchange rate changes .Inquiring deal mode and market maker system were introduced into the inter-bank market for foreign exchange in 2006, which make it true to formulate elastic RMB exchange rate in China. In the article, we tested the linkage between interest rate and exchange rate measured the nominal RMB rate, based on the forward-looking Taylor rule with exchange rate item added which was put forward by Danne, Christian & Schnabl, Gunther(2008) in the practice of China. The empirical study showed that the interest rate decision making by Peoples Bank of China had been influenced by RMB exchange rate more and more after the RMB exchange rate reformed in July 2005. But compared with the inflation target, the effect is still weak. Whether in the long-term or in the short-term, therere positive impacts for RMB exchange rate to Peoples Bank of Chinas monetary decision making.
RMB Effective Ezchange Rate Taylor Rules Forward-looking Equation Monetary Policy Co-integration Test
WANG Qianhong
Glorious Sun School of Business & Management, Donghua University, Shanghai, P.R.China, 200051
国际会议
2009 International Institute of Applied Statistics Studies(2009 国际应用统计学术研讨会)
青岛
英文
1-8
2009-07-25（万方平台首次上网日期，不代表论文的发表时间）