The Rmb Exchange Rate Formation Mechanism Of The Microscopic Foundation

The decision and implementation of exchange rate policy dependon the specific macro economic environment and micro foundation. Sincethe 1990s, the neglected aspects which were considered as premise orunimportant details in the exchange rate macrostructure models enteredthe research fields, and these have formed some recent developmentdirections. Among them, some economists began to pay attention to themicro foundations of macroeconomic which were not considered in theoriginal exchange rate theories, and thus the macroeconomic analysismethods of exchange rate bearing microscopic foundations were formed;Meanwhile, based on the animadverting on rational expectations, themicrostructure theory of foreign exchange decision starting from thestudy of market microstructure perspective and, the chaos analysis theoryfrom the ideal of the exchange rate chaos fluctuation resulted frommarket participants' heterogeneity also became emergence.Based on the New Classicism Macroeconomics and the NewKeynesianism Macroeconomics, This paper takes micro foundation ofRMB exchange rate mechanism as object, around the action of residents,import and export action of enterprises and assets choice of financialinstitutions as well as development and changes of micro-entities inprocess of system transformation, carried the empirical research ofcorrelation between Chinese micro economic participants and RMBexchange rate mechanism. The empirical results show that exits ainsignificant association between Chinese micro economic participantsand RMB exchange rate mechanism at present. Therefore, the reform ofRMB exchange rate mechanism must pay attention to micro economicparticipants, and form the real foreign exchange market to Lay thefoundation for the further improvement of market mechanism.