The change of the value of the RMB and its influences on China

The issue of the change of the value of the Chinese currency has been focused by the world for several years. Its influences on not only China but also the rest of the world could not be neglected. Briefly historical background of the change of the Chinese currency as well as the influences it caused will be discussed in this essay by using the Mundell-Fleming Model as the basic concept to research and explain the particular situation in China. The result is that China should do the steady appreciation in terms of its currency rather than revalue it rapidly to improve the Chinese economy and several recommendations will be listed as well.