Analysis Of The Conflict And Coordination Management Of Monetary Policy And Exchange Rate Policy In China

In the background of the global economy and financial integration, the conflict between monetary policy and exchange rate policy is an important issue that many countries have met including china. With the deepening of China's opening to the outside world, the conflicts between monetary policy and exchange rate policy are inevitable at the macro-economy running moment. Thus, the coordination of those conflicts has gradually drawn much attention from academic field and decision-making authorities. This paper will attempt to make depth analysis on the conflicts and coordination management,analysis of monetary policy and exchange rate policy through a combination of quantitative and qualitative methods, so as to set foundation for China's long-term policy selection in open economy. This paper mostly summarize the four times conflicts between monetary policy and exchange rate policy since the reform of exchange rate system in 1994. Then it analyzes the underlying causes of the conflicts and coordination measures taken by the government. Through analyzing it finds that the coordination management practice which are taken by China do not settle the problem fundamentally and effectually. So we need to design new programs and operation methods which are suitable to china's national conditions. This paper uses the coordination experiences of developing countries and put forward five policy proposals for China's long-term policy selection combining with China's actual situation.