Research On RMB's Exchange Rate: Analysis Of Efficiency & Exchange Rate Regime Reconstruction

Exchange rate of RMB issue has been a focus among academic circle ,business circle and the government of China and other countries in recent years. I find exchange rate of RMB has showed three characters(i.e. over stabilization , exchange rate misalignment and mismatch of the policy function) .Stable exchange rate has improved the export , FDI and the efficiency of China's expansionary fiscal policy, which help China's economic growth greatly. But it also results in some costs which will be increased with China's opening more widely to the outside world. So the efficiency of Current exchange rate policy will be decreased in the long run. The adjustment of exchange rate policy is necessary.The idea of the adjustment is that a best combination of stable exchange rate policy and flexible exchange rate policy should be found. Exchange rate policy must be oriented to external economy, which helps China's economic growth in internal and external equilibrium. After analyzing various feasible regimes, I think a true managerial floating regime is a best choice.This dissertation includes four parts. The academic results of RMB's exchange rate issue are summarized in the first part. The main character of the exchange rate of RMB is analyzed in the second part. The efficiency of China's current exchange rate regime is analyzed in the third part. A conclusion of the best choice of China's exchange rate regime is drawn in the forth part.