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10.1109/ICIII.2011.422guideproceedingsArticle/Chapter ViewAbstractPublication PagesConference Proceedingsacm-pubtype
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The Influence of RMB Exchange Rate, Excess Liquidity to Inflation

Published: 26 November 2011 Publication History
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  • Abstract

    It is important for China to consider whether it is appropriate to curb inflation with RMB appreciation. In this paper, we use the Vector auto regression model to study the influence of RMB exchange rate and excess liquidity to inflation from 1996 to 2011. The results show that RMB appreciation has some inhibiting effect on inflation but the effect is weak. Excess liquidity has some driving effect on inflation, and the driving effect of excess liquidity is greater than the inhibiting effect of RMB appreciation to inflation. Futher analysis shows that the excess liquidity produced in the background of RMB appreciation lead to the apprearance of market speculation and hype behavior, thus form the market inflation expectation, and pushs inflation ultimately.

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    cover image Guide Proceedings
    ICIII '11: Proceedings of the 2011 International Conference on Information Management, Innovation Management and Industrial Engineering - Volume 01
    November 2011
    591 pages
    ISBN:9780769545233

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    IEEE Computer Society

    United States

    Publication History

    Published: 26 November 2011

    Author Tags

    1. Excess Liquidity
    2. RMB Exchangec Rate
    3. VAR model
    4. inflation

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