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Interest rate parity (discovery) forecast. yield

Currency should be reduced in price. It also predicts that

Other things being equal, the increase of real interest rate should be

Thank others for giving you money. This article is one of them.

The cornerstone of international finance, the development of important

Constructing the most important exchange rate decision

Currency exchange rate model and other theories.

The method in this paper includes unit root.

Test stationarity check data, cointegration test.

In order to test the long-term equilibrium relationship between them

Interest rate and on-site selling, error correction model for testing.

Causality of time series data.

A widely used method for estimation

One-way method of Granger and Engel (1987)

E.g.). Identical product vector of OLS estimator

Estimation of Dependent Variables of Super Consistency and Convergence Rate Ratio

Fixed variable model of stock.

(1987). Cointegration means long-term equilibrium. this

Short-term adjustment to long-term equilibrium

The error correction mechanism is introduced by charts.

Sargin (1984) and extended Engel and Granger (1987).

This paper attempts to explore this empirical problem.

The market uses daily data of RMB and USD.

July 22, 2005, 2008 1 month 10. Empirical evidence of this theory

The whole sampling period shows that in the long run, we find that

The relationship between behaviors in corresponding positions.

Exchange rate and selling price are in the context of cointegration. In addition,

Granger causality test shows that RMB positions and selling

The deepening of speed affects each other. Therefore, we apply VEC.

The spot exchange rate of RMB is analyzed by using model and variance decomposition method.

And the selling price. As a result of the experiment, we can draw the following conclusions.

The spot market of RMB is a leading market with great significance.

Influence. RMB offshore market selling.

Although the domestic foreign exchange market

Changes will affect what happens in the offshore market.

The impact is too small. This means that due to capital

Control, the government may still pursue.

Independent economic policy, at present

Foreign influence is beyond its control.