Abstract With theoretical evidences of financial non-neutral and BEER model, together with the synthetic index analysis, the Paper measures the level and misalignment of RMB equilibrium exchange rate from 1994 to 2010 by using co-integration test and Hodrick-Prescott filter. The empirical study indicates that financial development effects RMB exchange rate to a larger extent and in long run. The degree of misalignment of RMB exchange rate is not serious; the figure is below 5%. From another point, the conclusion of “the Overvaluation of Renminbi Undervaluation” put forward by Cheung is supported.
CHEN Jun. Does Equilibrium Relate to Financial Development?——The Measurement of RMB Exchange Rate Based on Adjusted Model of BEER. Economic Survey, 2013, 1(4): 0145.
2013, Vol. 1 
