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Exchange Rate System

Posted on:2001-04-18Degree:DoctorType:Dissertation
Country:ChinaCandidate:L X HuangFull Text:PDF
GTID:1116360065950307Subject:World economy
Abstract/Summary:PDF Full Text Request
As an important part of international finance, exchange rate regime has been received much attention by international society and economic circles. Especially after 90s of 20"1 century, with the process of world economy integration becoming faster and faster, and the regional financial crises breakout more frequently, the exchange rate regime becomes a focus of international finance economists again. Whether a country can find an appropriate exchange rare regime or not, directly connects with its continual and stable development. Since China is at the stage of assault fortified position in its economic system reform, it is very necessary and exigent for China to choose an exchange rate regime in accord with the situation of China and the tide of the world.According to the facts that some countries had given up their fixed exchange rate regime in financial crises, many scholars concluded that floating exchange rate regime is better than fixed exchange rate regime for the developing countries. In fact, there is no superior or inferior between exchange rate regimes themselves. Which exchange rate regime should one country choose must consider with all economic conditions of the country and the tendency of international exchange rate regime together.The main purpose of this papa is: from the complete review of the phylogeny of international exchange rate regime, and through the thorough analysis of the economic characteristics of each exchange rate regime, disclose the discipline of the arrangement and development of the exchange rate regime. Then use the conclusion to analyse the substantial situation of China, in order to form a framework for the option and reform plan of the Chinese exchange rate regime.To sum up, the whole paper focuses on there problems:First, survey the course of modern international exchange rate regime, and disclose its tendency.The indication of modern international exchange rate regime is the international gold standard in the end of 19th century. In more than 100 years, international exchange rate regime has experienced 5 eras-the golden era(1880-1914), the disordered era(1914-44), the Bretton Woods era(1944-73), the uncertainty era(1973-85), the self-questioning era(1985 and beyond). With the supersession of these eras one by one, the modern international exchange rate regime had experienced the gold standard, the gold exchange standard, the floating exchange rate regime, managed floating exchange rate regime and the currency area regime in turn. After the discussion of each era's process, characteristics, and the reason of its collapse, we conclude that the tendency of modem international exchange rate regime is returning to fixed exchange rate regime.Second, analysis the three basic exchange rate regime, in order to grasp their characteristics and conditions.There are three basic modern exchange rate regimes-fixed exchange rate regime, floating exchange rate regime and currency area regime, generally speaking there isno superior or inferior between them. The fixed exchange rate regime means that the monetary authorities is exchange rate maker and has duty to keep this price. This regime adapts to a country which should has strict discipline on its monetary policy, its economic objects are deflation and stabilization, and the international economic environment is stable, and the cooperation of world economy is closely. The floating exchange rate regime means that the exchange rate is determined by market. It adapts to a country which has the preference of monetary policy, its economic object is development, the international economic environment and the cooperation of world economic is not good. Currency area regime means that the members of currency area fix their exchange rates, and joint floating, the factors flow freely in the area, the members concede to all of their monetary authority and a part of their fiscal authority. This regime adapts to a country government's intensive desire and endeavor to join in the currency area, and it has a strict disciplin...
Keywords/Search Tags:exchange rate regime, fixed exchange rate regime, floating exchange rate regime, currency area regime
PDF Full Text Request
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