Research On The Feasibility Of RMB Exchange Rate Target Zone

In this paper, we focus on the possibility of the plan for the RMB target zone. Under the integrity of world economy and realization of the free flow of international capital, RMB exchange rate regime will finally choose floating exchange rate regime. In Midterm, Target-zone exchange regime is a best choice for us.The thesis is organized as follows.The first section concentrates on context and existing literature about this thesis and reveals the tendency of exchange rate regime which instructs the RMB exchange rate regime rebuild.Chapter one reviews the evolution of China's exchange rate regime and discusses the characteristic of current exchange rate regime. It point out that the floating exchange and currency baskets regime is not suitable for our country now. Target-zone regime is one of the best choice for us in midterm.Chapter two focus on the application and possibility of RMB target zone. The first part elaborates the theories and practice of target-zone regime such as the meaning, models and types. The second part of this chapterIn chapter three, we give out an initial designing for the RMB exchange rate target zone. We specify the central parity, the band and the management measures of the RMB target zone.In chapter four, we make a summary of this paper and make a list of some problem which is need to be solved deeply.