Effects of RMB Interest Rate and Exchange Rate Adjustment on Trade Balance

摘要：

This paper studies the impacts of RMB interest rate and exchange rate adjustment on China’s trade balance using VEC model. Based on cost decomposition method, pricing-tomarket and trade equilibrium equation, we observed that trade balance is negatively related to exchange rate, relative national income, relative interest rate, relative wage and relative price of inputs. RMB appreciates had Inverse J-curve effect on trade balance, and the rise of RMB’s relative interest rate would reduce trade balance.

关键词： interest rate exchange rate trade balance pricing-tomarket

作者: Chengying He Kaijiang Yu Zuoyin Shao

作者单位: Department of Strategic ResearchGuosen SecurityShenzhen, China Faculty of Business Administration University of Macau Macau, China

会议类型: 国际会议

会议名称: 2011 Fourth International Conference on Business Intelligence and Financial Engineering(第四届商务智能与金融工程国际会议 BIFE2011)

会议地点: 武汉

会议语种:英文

页码: 602-606

在线出版日期: 2011-10-17（万方平台首次上网日期，不代表论文的发表时间）