The analysis : the influence of RMB exchange rate fluctuation on real estate price in China
Xiuzhi, Zhang and Wu Xiaoguang
In this paper, we will analyze the effect of the reform of exchange rate institution on the real estate market based on a case study of Taiwan and Japan', and the result suggests that the appreciation of a country's currency leads to the rise of real estate price, or even worse, the economic bubble. Quantified analysis of the international capital flows and the real estate price volatility in China real estate market shows that the expectation of the appreciation of RMB is one of the elements that inspire foreign investment speculating in China real estate market. So we suggest that the government should use various methods of macroeconomic control, based on which to make out the appreciation of RMB step by step, to crack down on the speculations and to make the yield to the normal level, in order that the international speculative capital cannot gain speculative profits and stop their speculation.
Event: XXIII International FIG Congress : Shaping the change
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