A Study On RMB Exchange Rate Policy From The Perspectives Of IPE

This paper discusses the current RMB exchange rate policy from the perspectives of IPE in order to answer what the best RMB exchange rate policy in line with China's national interests.The main idea of paper: from an international perspective, contained by today's international monetary system dominated by U.S. dollar hegemony which is the only platform for RMB activity and the external constraints of RMB exchange rate policy, China can only choose game equilibrium exchange rate as its main strategy; from a domestic perspective, as a policy instrument, RMB exchange rate policy is to serve the adjustment of China's economic development strategy and the transformation of China's economic development model, and should be conducive to sustainable economic development and improvement of national welfare. The urgent need is to eradicate the passive ultra-issued currency exchange rate formation mechanism.The whole paper is divided into four sections: the first chapter analyzes how China's RMB exchange rate system evolved and how the pressure of RMB appreciation emerged; Based on discussing the relationship between "global imbalances" and RMB exchange rate, the second chapter gives the theoretical analysis framework of IPE and discovers the nature of RMB exchange rate policy choice under it. Around the core concept of "national interests" emphasized by IPE, Chapter III discusses the RMB exchange rate policy from international and domestic aspects respectively: firstly, the author analyzes the exogenous constraining condition-the international monetary system which is faced by the RMB exchange rate policy; secondly, the author analyzes China's domestic needs of RMB exchange rate policy, including discussing the relationship between China's economic development strategy adjustment and economic development model adjustment and the RMB exchange rate policy, and the price of the current RMB exchange rate policy. Chapter IV is the conclusion of this paper.