Causes of the Change of Real Exchange Rate of RMB : Evidence from an SVAR model

摘要

The change of real exchange rate of RMB (Reminbi) is influenced by real and nominal factors.The former includes the productivtity rate and trade conditions;the latter involves nominal exchange rate and money supply.With the employment of SVAR model,we find that nominal factors are the chief ones that cause the real exchange rate to change.Amongst nominal factors,nominal exchange rate has greater influence on the change of real exchange rate than monetary factors.Therefore,the continuous growth of China's economy fails to explain the change of real exchange of RMB.