Economic Policy Uncertainty and Asymmetric Volatility of the RMB Exchange Rate—Based on the Perspective of Investors'Expectations
Based on the time series data from January 2011 to March 2022,this paper attempts to explore the asymmetric impact of economic policy uncertainty on RMB exchange rate fluctuations and the mediating effect of investors'expectations.The study finds that the increase in relative economic policy uncertainty exacerbates the volatility of the RMB exchange rate,and shows obvious asymmetric charac-teristics,that is,the volatility is greater when the macroeconomic conditions are worse than when the macroeconomic conditions are better,and investors'expectations play an important mediating role in this.In view of this,differential control measures should be taken according to different macroeconomic conditions to boost investor confidence,avoid the formation of expectations of RMB adverse changes,and prevent excessive fluctuation of RMB exchange rate.
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