A labor value model for exchange rates in a comprehensive economy

This paper establishes a labor value model of exchange rate. According to the labor theory of value, the exchange rate is decomposed into the exchange rate of “a country’s currency and a unit of product” to obtain the main body of the model, and the capital market adjustment items measured by official foreign exchange reserves are added to obtain the complete model. In the empirical part, the appropriate index was selected, and the cointegration relationship test was carried out, and the ARDL model was established according to the test. The regression coefficient R2 of the model is 98%, and the correlation coefficient between the fitted exchange rate value and the actual exchange rate value is 0.95.