Currency mismatch and economic growth: Razin and Collins (1997) indicate that the exchange rate mismatch, i.e. the exchange rate deviation from PPP, occurs in both developing and developed countries but only the serious overestimation affects economic growth. Generally, exchange rates are moderately underestimated in countries with rapid economic growth. Thus, PPP test is an extremely important tool to monitor policy makers and ensure economic growth. In the late 1990s, the Asian financial crisis caused great damage to the Asian countries and even the world’s economy. Meanwhile, people have the chance to see the critical negative outcome of exchange rate overvaluation and inappropriate exchange rate regime and monetary policy errors. During the Asian financial crisis, China also suffered a shock. To stabilize the world’s economy, China has promised not to devalue the RMB, that actually caused the overestimation of Yuan, and that in turn caused the damage directly on Chinese import and export trade that year. And after year 2003, the appreciation of Chinese Yuan is also facing strong pressure. But whether the Yuan is undervalued or overvalued in the end is a highly debated factor. Therefore, the empirical study of purchasing power parity of RMB has very practical significances, mainly in determining the nominal exchange rate anchor or whether there is a serious mismatch, maintaining sustained and stable growth of China’s economy, and providing protections for the improvement of China’s exchange rate system.
货币错配与经济增长：拉辛和Collins（1997）表示，汇率不匹配，即汇率偏离PPP，多发生在发展中国家和发达国家，但只有严重高估影响经济增长。一般来说，适度低估的汇率在经济快速增长的国家。因此，PPP试验是一个极其重要的工具来监视决策者和确保经济增长。在20世纪90年代末，亚洲金融危机的亚洲国家甚至世界经济造成了极大的损害。同时，人们有机会看到汇率过高和不恰当的汇率制度和货币政策的错误关键的负面结果。在亚洲金融危机期间，中国也受了惊吓。为了稳定世界经济，中国承诺人民币不贬值，这实际上造成高估元，并反过来造成的损害，直接对中国进出口贸易这一年。 2003年后，中国人民币的升值也面临着强大的压力。但人民币是否被低估或高估的到底是一个高度争议的因素。因此，购买电力平价人民币的实证研究具有非常实际的意义，主要是在确定的标称交换率锚或是否有严重错配，保持中国经济的持续，稳定增长，并为改善中国的交流提供保护汇率制度。
