Proceedings of the 2013 International Academic Workshop on Social Science

A Group of Criterions on National Economic Security with Pass-through Model

Authors
Zheng Wang, Min Hu
Corresponding Author
Zheng Wang
Available Online October 2013.
DOI
https://doi.org/10.2991/iaw-sc.2013.7How to use a DOI?
Keywords
Exchange Rate; Pass-through Model; Financial Crisis; Historical Data
Abstract

The fluctuation of foreign exchange rate has a fatal influence on one country’s domestic economy, foreign trade, and the relations between international economies. In this paper, I prove the Pass-through Model of Tange(1997) and propose a group of criterions of national economic security including the international trade pass-through parameter and the domestic trade pass-through parameter. By doing empirical research of Thailand, Indonesia, Korea, Japan and UK, I conclude that when the international trade pass-through parameter is far from 1, the domestic exchange rate should be adjusted; when the domestic trade pass-through parameter is far from 0, the fluctuation of foreign exchange rate will lead to the crisis of the domestic economy. From the results of this paper, we can see that, the exchange rate of RMB is relatively reasonable, and it may have a little fluctuation in the future; on the other hand, the fluctuation of exchange rate has a certain extent of influence on China’s domestic market, but it can’t be large.

Copyright
© 2013, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2013 International Academic Workshop on Social Science
Series
Advances in Intelligent Systems Research
Publication Date
October 2013
ISBN
978-90-78677-84-0
ISSN
1951-6851
DOI
https://doi.org/10.2991/iaw-sc.2013.7How to use a DOI?
Copyright
© 2013, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Zheng Wang
AU  - Min Hu
PY  - 2013/10
DA  - 2013/10
TI  - A Group of Criterions on National Economic Security with Pass-through Model
BT  - Proceedings of the 2013 International Academic Workshop on Social Science
PB  - Atlantis Press
SP  - 25
EP  - 32
SN  - 1951-6851
UR  - https://doi.org/10.2991/iaw-sc.2013.7
DO  - https://doi.org/10.2991/iaw-sc.2013.7
ID  - Wang2013/10
ER  -