| is one of the core variables reflecting and influencing a country's foreign economic contacts and the domestic economic operating situation. Exchange rate motion has its own unique rules. We define the principle and implementation of exchange rate movements and their interaction with other economic variables as"exchange rate mechanism". Exchange rate mechanism is to an open economy what interest rate mechanism is to macro-economy or the price mechanism is to the micro-economy, all of which is of great value for doing research. However, by far we haven't seen a systematic study of the literature for the exchange rate mechanism at home and abroad, which is a great regret. With the purpose of breaking the ice, this thesis tries to establish a preliminary framework for the exchange rate mechanism, carding and synthesizing related previous theoretical achievements of the predecessors within this framework, meanwhile seeking to make logical and practical innovations.Exchange rate mechanism is made up of the following three aspects: the exchange rate determination; the direct influence of exchange rate on the relevant economic variables; the indirect influence of exchange rate on the macro-economic operation and development. The restricting relationship as well as the coordinating relationship among the three constraints, work together to explain the existence means of exchange rate mechanism. This thesis analyzes the exchange rate mechanism in two parts, namely the exchange rate formation mechanism and the exchange rate function mechanism. As far as exchange rate formation mechanism, this thesis bases upon the most basic concept of supply and demand, seeking along the historic trace of the evolution of exchange rate determination theory, and makes comment on the main theories after carding them. In addition, this thesis proposes a general equilibrium model of exchange rate determination by combining with Markowitz's portfolio model and the market microstructure theory. As to exchange Exchange rate, as the tie linking the economy at home and abroad, rate function mechanism, the influence of the exchange rate to the macroeconomic operation and development is indirectly formed by the functions of exchange rate to the related economic variables such as foreign trade, investment, money, the liability stock of foreign trade assets and so on, which are the bond and revolving shaft of the operation of the exchange rate function mechanism. Based upon the above, this thesis divides the exchange rate function mechanism into the following: the exchange rate - trade mechanism, the exchange rate - direct investment mechanism, the exchange rate - the stock system, the exchange rate - indirect investment mechanism and the exchange rate - money supply mechanism, all of which are studied and staed respectively.There are some innovations and progresses in this thesis. They are as follows:First, defining the content of the exchange rate mechanism and giving a preliminary analysis framework of the exchange rate mechanism of an open economy.Second, establishing a general equilibrium model of exchange rate determination based upon synthesizing a variety of exchange rate theories.Third, setting up 5 exchange rate function mechanism that are mutually different but closely related to each other according to the different channels of the roles of exchange rate on the macroeconomy.Fourth, applying the idea of evolution to analyze human beings'industrialization process and the exchange rate policy's influence upon a country's industrialization process.Fifth, abstracting the positive and negative effects of international direct investment in 5 kinds, i.e., the increased output caused by more efficient allocation of resources, the saving of the transaction costs; positive externalities, the negative externalities and the damage of the absolute interests caused by the redistribution of the interests.Sixth, bringing the outflow of local currency into the analysis areas of fundamental monetary supply, which complements the traditional "triangle paradox". This is because as far as the reserve currency country is concerned, even if it implements a floating exchange rate system, there is no guarantee for the independence of its monetary policy.Exchange rate motion is a very complex economic phenomenon, and the exchange rate mechanism research is a very large systematic project. This thesis tries to break the ice, hoping to arouse the attention from the academic circle so as to emerge more and deeper research achievements. |
