Research On The Determination Of Exchange Rate

According to the development of exchange rate determination theory, it can be classified as the classic exchange rate determination theory, the modern exchange rate determination theory and the contemporary exchange rate determination theory. The classic exchange rate determination theory includes the theory of purchasing power parity and the theory of interest-rate parity. As the main part of modern exchange rate determination theory, the capital market method of exchange rate determination theory includes the currency model which includes elastic price model and viscous price model, the currency substitution model and the portfolio model. The contemporary exchange rate determination theory includes the speculation foam theory, the news model and the chaotic model.On this base, serious review and aborative analyses are made on main theories of exchange rate determination by the way of modern economy analysis method and from the angle of mathematics model Meanwhile in this process the author bands qualitative analysis and quantitative analysis together. Finally, from the viewpoint of system and on the consideration of international financial environment, some ideas are presented on the development of exchange rate determination theory: by means of analysis on basic economic factors, a long-term model of exchange rate determination theory can be constructed; by means of modern nonlinear theory, a short-term model can be constructed; from viewpoint of system, it is an effective avenue to band the two methods together to solve the exchange rate determination problem.