Exchange Rate Regimes Options In Multiple Choice Games

The Exchange rate issue is so complex, exchange rate issue was deeply studied and different exchange rate theory were presented from multiple perspectives by some economists and other scholars in other fields.The RMB problem appears more complex in actual environment, whether RMB be appreciated and the level of RMB appreciation have been meticulous researched in many Angle by Chinese and foreign scholars.Through these study we find the influence factors of exchange rate system are various, including economic, political and historical factors.This paper decide to analysis exchange rate system options between domestic and foreign aspects.The exchange rate regime options is affected on different political systems, interactions between interest group and government in domestic.On the other hand, conflict between international political power and international economic interest affects the establishment of the international monetary system in international and exchange rate system arrangement in national.United States, Japan and Europe changed the attitude about RMB exchange rate because of interaction between international political and economic.Global financial crisis made the correlation of forces change between east and west, however, China and other emerging countries rise rapidly.Besides, US and other developed countries also faced a very serious domestic political and economic difficulty, They considered that Chinese export commodity may bring negative impact on industrial and social employment, They sought to put pressure on the RMB appreciation to ease domestic political and economic contradiction as a result. US and other western countries continuously pressed the Chinese government in recent years, making conflict of RMB problem more and more drastic.The US government thought the RMB appreciation is a main reason its current-account deficit and trade deficit. Japan and Europe also believe RMB should appreciate, they think the current exchange rate of RMB does not satisfy their prospects,and is beneficial for China.Chinese Government tried to follow their own schedule for the exchange rate system reform, based domestic economic structural adjustment, maintaining political stability and the need to maintain progressive reform. By observing the process of continuous appreciation of RMB, we found its internal factor is the overall strength of our social and economic improvement, and its external factor is result of the current international political game. With the globalization, integration, liberalization of the international economic development, the core of making a equilibrium on balance of payments and international financial reform is reasonable arrangements to promote the exchange rate. The country should also keep the international monetary system secure and stable of the international economic order.The RMB appreciation debate is not just economic issues, it reflects the struggle of global political power and economic benefits in essence, playing a part to national economic development and international political status, through this debate, we could also find Chinese exchange rate reform has become an important issue in international economic.The adjustment of RMB exchange rate level and regime directly affect the economy of other countries.As analyzing Political Economy and International Relations from the interdisciplinary research point, Exchange rate arrangement and international monetary system adjustment is critical for International Political Economy's international monetary analysis. In the post-Cold War era, development of the International Relations theory developed a lot. non-traditional security areas which mainly focus on international trade and international finance are more researched than traditional security theory.Over the past 30 years, the International Political Economy has been made many constructive studies on the national exchange rate regime choice, the international monetary system, international capital aid, international exchange rate system and the relationship between the international trading system.Besides, what IPE explained to importance of exchange rate regime option is benefit for the assessment of contemporary international monetary system, regional monetary cooperation arrangements and the choice of exchange rate regime. In a word, interaction study between domestic system and international political economic enrich the study of international political economy approach and subject.