Exchange Rate Regime Choice And The Development Trend Of Research

The financial crises have broken up in sequence since the beginning of 1990s which stunned the world by their dreadful power and obvious infectivity. It's remarkable that although these crises look different in their origins and manners, they are the same in that they were all associated with currency crisis. Almost every country involved had experienced the great fluctuation of its exchange rate and adjustment of its exchange rate regime. It's also worth noting that these countries tried different directions when they strived for finding the way out. Some of them discarded the former rigid exchange rate regimes and turned to floating while the others going to the opposite by more closed regional monetary cooperation in order to obtain a secure financial environment. So there comes up a question that how a country can design and choose a suitable exchange rate regime in accordance with its macroeconomic development to insure the persistent growth and resist the risks and shocks under the economic globalization circumstances. It's also critical to China after its WTO entry as impact of the economic and financial globalization become more overwhelming.The main content of this paper includes the evolvement of exchange rate regime, the theoretical framework of choosing exchange rate regime, the referential factors and the background for the choice of exchange rate regime, and characteristic and trend of different type of countries' choice. China's RMB exchange rate regime reform and its participation strategy in the Southeast Asian monetary cooperation are also included in the paper.Both the historical and realistic respective are considered, and multiple research methods are utilized in this paper. The static, comparative static and dynamic analytical methods are equally used. There are both notional analysis and empirical research. The paper also uses the modern game theory to simulate the reality. In the process of writing this paper the author consult a huge volume of literature in order to stipulate her own arguments on the basis of reference and sum-up of the others.