An Empirical Analysis of the Conduction of the RMB Exchange Rate Fluctuation on Domestic Consumer Price

This paper firstly makes a briefly introduction about the theoretical basis of exchange rate conduction,followed by an empirical analysis of the conductive effect of RMB exchange rate through cointegration model,impulse response analysis and variance decomposition.Results show that RMB exchange rate has certain conductive effect on domestic consumer price,in the long run,RMB exchange rate has a positive impact on consumer price,and the con ductive effect of RMB exchange rate on consumer price clearly weaker than the conductive effect on import price and commodity price.