Empirical Study on RMB Exchange Fluctuations Impact on Price Level in China from Perspective of Exchange Rate Pass-through

RMB exchange rate changes pass-through effect on China's domestic price level may determine the choice of exchange rate system as well as formulation and implementation of monetary policy by the People's Bank. This paper empirically studies the pass-through effect of fluctuation of RMB exchange rate on the price level in China, as well the pass-through speed and degree of RMB exchange rate on the import price, producer prices and consumer prices in domestic price chain, which helps to under-stand the pass-through effect of RMB exchange rate fluctuation in different price links.