Abstract：
The reforms of RMB exchange rate system, implemented in 1994, 2005 and 2010, have significant impacts on China's macroeconomic. Based on such a background, this paper, with SVAR method empirically analyzes the impact of RMB exchange rate fluctuations on macroeconomic variables during January 1995-February 2011, and the dynamic transmission mechanism of exchange rate shocks. It shows that the appreciation of the RMB gives negative effects to the growth of net export and real output, which leads to an increasing money supply but conducive to controlling inflation in China. A wider floating range, directional floating mechanism, and consumption stimulating policies be proposed to improve the economic effect of RMB appreciation.
2012 
