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ommodities will be first elaborate including the law of one price and Purchasing Power Parity Theory. The following is the exchange transfer mechanism and two kinds of exchange transfer effects – completely transfer and incompletely transfer. The features of RMB exchange rate in recently years and the expression of inflation in China will described at the end of this chapter.
The research methodology including unite root test, impulse function and variance decomposition will be the main content of the third chapter.
The fourth part of this thesis is the analysis and findings. A model will defined in this thesis to find the effect of exchange rate in consumer price index and produce price index. In addition, there will be a comparison about the effect of exchange rate on consumer price index and https://www.51lunwen.org/fm/2012/0123/0010178529.html  produce price index.
The last chapter is the conclusion and recommendations of this research. The first part of this chapter will be the conclusion of this research. The following part is the recommendations of this research to control the inflation under the situation of exchange variation. 

 

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