How will the appreciation of the renminbi?
The impact of the appreciation, first of all is the field of trade, the appreciation of the renminbi, exports would certainly drop, but drop the issue of how much. Exchange rate change on the extent of the impact of export? In fact, only in the exchange rate movements and export between the large positive correlation between the circumstances, the exchange rate adjustment on exports will play a substantive effect.
Second, domestic prices and the economy. Appreciation of the renminbi, which is equivalent to RMB purchasing power increased, imports increased, domestic price level will drop significantly, which is emerging from deflation in the shadow of China's economy is again the face of deflationary pressure. From the domestic point of view the present situation, due to a huge market, but consumers still prefer imported goods, so imports of consumer goods may be more than the import of capital goods, thereby creating the risk of deflation.
Depreciation of the currency will happen?
Advantages:
The devaluation of the Renminbi could stimulate exports and stimulate economic growth while curbing unemployment. Second, the renminbi was devalued, foreign holders of short-term to allow the yuan to shake our confidence. This is no doubt that the elimination of hidden inflation pressure, like the United States block China's emergence as the financial crisis.
This stage, to my point of view, although the devaluation of the Renminbi will also have some negative impact, but relative to the appreciation, the depreciation is far greater than the appreciation of the benefits.
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The impact of appreciation, is first trade fields, RMB appreciation, and exports will surely fall, but declines have much problem. How changes in exchange rate of export? In fact, only in the exchange rate and the positive correlation between the export, under the condition of the revaluation would have substantial effects on exports. Two is to domestic prices and economic effect. RMB appreciation, equivalent to enhance the purchasing power of imports, domestic price level will drop significantly, it just outside the Chinese economy deflation shadow, and against deflation pressure. From the current situation of domestic market is huge, but, because consumer preferences, therefore, still import the goods imported may exceed production material imported, resulting in a deflationary risks.
How will the dollar?
Advantages:
The dollar can stimulate exports, stimulate economic growth and curb unemployment. Secondly, the dollar, short-term inside will let foreign with renminbi confidence. It can eliminate hidden inflation pressures, such as America's blockade of the financial crisis.
At present, my point of view, while the dollar will also bring some negative effects, but relative to rise, the benefits outweigh the appreciation of devaluation.
How will the appreciation of the renminbi?
The impact of the appreciation, first of all is the field of trade, the appreciation of the renminbi, exports would certainly drop, but drop the issue of how much. Exchange rate change on the extent of the impact of export? In fact, only in the exchange rate movements and export between the large positive correlation between the circumstances, the exchange rate adjustment on exports will play a substantive effect.
Second, domestic prices and the economy. Appreciation of the renminbi, which is equivalent to RMB purchasing power increased, imports increased, domestic price level will drop significantly, which is emerging from deflation in the shadow of China's economy is again the face of deflationary pressure. From the domestic point of view the present situation, due to a huge market, but consumers still prefer imported goods, so imports of consumer goods may be more than the import of capital goods, thereby creating the risk of deflation.
Depreciation of the currency will happen?
Advantages:
The devaluation of the Renminbi could stimulate exports and stimulate economic growth while curbing unemployment. Second, the renminbi was devalued, foreign holders of short-term to allow the yuan to shake our confidence. This is no doubt that the elimination of hidden inflation pressure, like the United States block China's emergence as the financial crisis.
This stage, to my point of view, although the devaluation of the Renminbi will also have some negative impact, but relative to the appreciation, the depreciation is far greater than the appreciation of the benefits.