Empirical Research on the Impact of RMB Exchange Rate Fluctuations on the Price Level in China
China's exchange rate had climbed since July in 2005 after the currency reform,meanwhile,the domestic prices also rose significantly,that is,so-called currency"within the outer rise banished".This article uses vector Autoregressive model(VAR) and vector error correction model(VEC) to carry out the conductive effect that RMB exchange rate fluctuation has on the domestic prices from a quantitative point of view,and it put forward suggestions for the entire empirical analysis of the results.