Currency Crisis Infection And Choices Of Macro-policies

During the 1990s, currency crisis broke out frequently. The characteristic of these crises is that they will spread quickly among the countries like infectious disease without the powerful international intervene. Different scholars give different definitions to the currency crisis infection. Close intercourse of international trades and finance together with expectations of speculators constitute infections media of balance payments crisis and a shaky basic economy can enlarge the danger of the crisis infection. The three big crises in 1990s have many things in common. For example, the business relations between those countries infected were close, they carried out pegging system and open capital account The general economic situation was unstable and the bank system was weak The financial globali2ation pnnoo^ccta-environment for the currency crisis spreading Meanwhile die inner defect of international currency system can't be ignored. In order to withstand the crisis infection, it is necessary to strengthen international cooperations, to seek united supervision, to pursue a diversity of economic and financial contacts and transformation of international financial systems, to safeguard the stability of domestic economy, to push internal financial reform steadily, to choose appropriate exchange rate regime and strengthen financial supervision. In the process of opening financial market, China should exploit her strengths to amend for her weaknesses, defend financial risk and participate in international currency regime reform actively.Name: Wang Zhen Major: Agncultual economic management Tutor: Li Youluia...