Research On The Transmission Mechanism And Policy Harmony Between The Interest Rate And The Exchange Rate In China

Under the present economy system, the changes of interest rate of RMB have affected the level of exchange rate of RMB. How to smooth the transmission mechanism of interest rate-exchange rate, coordinate operation of the interest rate policy and exchange rate policy with advance in capital account liberation, is one of the prime issues influencing the healthy development of China economy. The main work and achievements of dissertation are follows:l.The effects of the interest rate on the exchange rate in international finance theory are discussed. The interpretative force of several kinds of models in China is analyzed.2.Under the restrictions of China economic system, including the degree of openness and liberalization of financial markets, the interest rate regime and the exchange rate regime, the implementation of monetary policy, it is discussed through many channels the transmission mechanism of interest rate-exchange rate is running publicly or secretly.3. The coordination practice of China's interest rate policy and exchange rate policy is analyzed. To realize the efficient transmission of interest rate-exchange rate, harmonize the interest rate policy and exchange rate policy, and ensure finance safety, reform measures are proposed in the course of capital account liberation.