Empirical Reseach on RMB Equilibrium Exchange RateIn recent years, China¡¯s economy experiences a rapid growth. A strong economy creates a strong currency. Based on the analysis of some economic indicator, many economists and policy markers argue that RMB is undervalued, and a heated debate on whether RMB should appreciate rises in the world. This paper uses some econometrics techniques including cointegration analysis and Hodrick-Prescott(H-P) filter approach to develop a model for RMB equilibrium real exchange rate. Using this model, we can assess RMB exchange rate and analyze its misalignment from an academic perspective. |