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Research On RMB's Exchange Rate Regime Reform

Posted on:2005-11-19Degree:MasterType:Thesis
Country:ChinaCandidate:C H YangFull Text:PDF
Abstract/Summary:PDF Full Text Request
Recently America & Japan require China to revaluate RMB's exchange rate, which makes the issue of RMB's exchange rate hotter than ever. There occur many disputes on RMB's exchange rate. Some argue RMB should be revaluate, some recommend to keep its value stable. According to the writer's opinion, what's import is not revaluation or devaluation, the key point is to reform current RMB's exchange rate regime. Once we find most suitable exchange rate regime, market will give clear answer to revaluation or devaluation. Traditional theories on exchange change rate regime focus on the dispute between fixed exchange rate and floating exchange rate. But since 1990's, several financial crises have outbreak at new economy countries, which highlight the importance of choosing correct exchange rate regime. Theorists have to re-censor adjustment standard. Then there have occurred many new theories. The writer first expound the dispute on fixed exchange rate regime & floating exchange rate regime, then introduce some new theories on exchange rate regime, such as "impossible triangle", "doctrine of the original sin", "the fear of floating hypothesis ","two poles", "monetary crisis model ", then analysis current status & inner defects of RMB's exchange rate regime. Finally the writer puts forward strategy on reforming RMB's regime: Floating exchange rate regime is the final choice in the long terms while target zone regime based on pegging a- basket-currencies is the most suitable choice in middle terms. After assaying current situation according to relevant existing theories, the writer comes into conclusion that the period ,from now on to the coming several years, is suitable occasion for switching from current actual fixed exchange rate regime to floating exchange rate regime step by step. The writer finally presents some specific advises on current reform on RMB's exchange rate regime.
Keywords/Search Tags:Exchange Rate Regime Theories, RMB's Exchange Rate Regime, Pegging Money Floating Regime, Target-Zone Exchange Rate Regime
PDF Full Text Request
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