The External Wow Gold In Public

Over the past few months, the external Wow Gold public opinion for appreciation rapid warming. China's trade surplus for years, and 2.4 trillion U.S. dollars of foreign exchange reserves are often to be used as direct evidence of the exchange rate is undervalued. It is noteworthy that China has since the 90s of last century, the economy maintained rapid growth, labor productivity increased substantially, the simultaneous rise of the real effective exchange rate of RMB, but rising slowly.

According to the Cheap Wow Gold famous "Balassa - Samuelson" theory, the real exchange rate = nominal exchange rate + inflation rate, while China has not only remained relatively stable nominal exchange rate, domestic inflation rate is also manageable. This means: do not underestimate either the RMB exchange rate, or China has adopted a special policy to control inflation. The exchange rate compared to the competition alone, more meaningful to discuss what China really has taken the policy, in the nominal exchange rate relatively stable, successfully resisted the international balance of payments surplus inflationary pressures. This may also be known as the China State macro-control "miracle" one.

In fact, since 2002 China Buy Runescape Gold has been using the "offset currency" - that is, notes issued by the central bank - the control means. In other words, the surplus generated by foreign central banks are forced to sell, the central bank base money passively thrown yuan. But this will inevitably lead to increasing market liquidity. To stabilize the money supply, the central bank and then recover money through the issuance of central bank bills. As a result, the currency was "house arrest" in the central bank, liquidity under control, the potential inflationary pressures can be eliminated.