The Currency Appreciation Of The Context Of Monetary Policy Orientation

The coordination of monetary policy and rate of exchange policy is the foundation of the economic development in the situation of global economic integration and the entry of WTO. However, the contradiction of monetary policy and rate of exchange policy is increasingly serious against the background of the appreciation of RMB and is likely to be worse with the expectation of RMB's long-term appreciation. It's high time to re-consider the coordination of monetary policy and rate of exchange policy.This paper summarizes the experience of monetary policy and rate of exchange policy's coordination in our country and abroad against the background of currency appreciation. Meanwhile, the paper has an analysis of the independence of our country's monetary policy. On the basis of two premises, the paper tries to find the appropriate point of coordinating monetary policy and rate of exchange policy.This paper includes five chapters.The first chapter introducts the meaning of coordinating monetary policy and rate of exchange policy , and elaborates some basic concepts and theories with rerfernce to monetary policy and rate of exchange policy.In the end,the chapter introducts the research ways and structure of the paper. Chapter 2 summarizes the latest three conflict of monetary policy and rate of exchange policy in detail since 1994 and makes an analysis of the background,cause and current situation about RMB appreciation. In the end, we concretely analyzed the influence of RMB appreciation on the monetary policy and the rate of exchange policy. Chapter 4 sums up the experience and lesson that Germany and Japan handle with the contradiction of monetary policy and rate of exchange policy under the background of currency appreciation. Chapter 5 establishs a model to check the independence of our country's monetary policy.The model mainly adoptes the sensitive degree between domestic short-term interest rate and foreign corresponding interest rate to measure the independence of monetary policy.Chapter 6 takes a conclusion that we should keep the independence of monetary policy under the background of RMB appreciation. In the meanwhile , rate of exchange policy is not the critical factor and the fluence of capital is the most important factor which influences the independence of our monetary policy. In the end, the main target of independent monetary policy is control inflation.