An Empirical Research on the Impact of German Refugee Flows on Euro Exchange Rate

摘要

Since 2015, German refugee problem has worsened continuously, attracting worldwide attention. The refugee flows have a certain blow on Germany economy and have caused the euro tumble against China Yuan. In order to analyze the impact of German refugee flows on Euro exchange rate, this paper makes research and gathers vast statistics and data, conducting empirical analysis. The refugee data have been chosen as the primary explanatory variable. Our findings indicate that the increasing refugee number has downward pressure on the euro, which leads to the devaluation of the euro to a certain extent. At the end of the paper, the practical significance of the impact of German refugee flows on euro exchange rate is discussed and some strategic recommendation on how China should learn a lesson from it is also put forward.