Analysis on the Influence of FED Interest Rate Adjustment on China’s Economy
These authors contributed equally
- DOI
- 10.2991/aebmr.k.220603.182How to use a DOI?
- Keywords
- U.S. interest rate; Chinese economy; Transmission Mechanism
- Abstract
During the time between 1980 and 2020, there were a lot of significant changes in the U.S. interest rate, the federal funds rate. Since the changes of interest rates in one country, especially in the United States, can affect fluctuations in the global economy, this paper focuses on how the U.S interest rate can affect the Chinese economy and what reasons or transmission mechanisms make those results. When discussing the relationship between the U.S. interest rate and the Chinese economy, this paper focuses on three fundamentals of the Chinese economy: Chinese macroeconomy, import and export, China-US exchange rate. The main result is that: the U.S interest rates and the Chinese economy are inversely related, especially in import, export, and China-US exchange rate. By exploring the causes of this result, the study finds out many determinant factors, and the degree of correlation depends on the net sum of the impacts of all factors. Eventually, based on the global economic environment, we get the conclusion that many key factors can make changes to the country’s economy. Although Chinese economies will fluctuate as the federal reserve makes changes to the U.S. interest, the government can resist negative shocks by strengthening the internal driving force of economic growth. It can stabilize the economy through flexible monetary policy and intermediate variables, such as the commodity price level, consumption and investment, international capital flows, and so on.
- Copyright
- © 2022 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article distributed under the CC BY-NC 4.0 license.
Cite this article
TY - CONF AU - Chen Jin AU - Zexiu Wu AU - Jiahe Yu PY - 2022 DA - 2022/07/01 TI - Analysis on the Influence of FED Interest Rate Adjustment on China’s Economy BT - Proceedings of the 2022 2nd International Conference on Enterprise Management and Economic Development (ICEMED 2022) PB - Atlantis Press SP - 1127 EP - 1135 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.220603.182 DO - 10.2991/aebmr.k.220603.182 ID - Jin2022 ER -