Choice Of Exchange Rate Regime In Developing Countries

The frequency of the recent financial crisis shows that the practices of the exchange rate system in developing countries are not successful in general. So that it is necessary for us to sum up the experiences and lessons in choosing the exchange rate in the developing countries. The difficulties of the analysis lie in that none of the country can be regard as the representatives of the developing countries.They have complex diversity, different scale, different economic and political system, different opening level and so on. As a result, it is difficult to describe the common features of the developing countries. This also means that it is not possible to found the generally suitable exchange rate system, and it is impossible to deny the either one of them. Moreover, it is necessary to adjust the exchange rate system in different developing stage.So the only purpose of this article is to establish the theoretical and the experiential framework of the exchange rate system choice. The analysis major involve in underlying two aspects: one of them is the comparison of cost and revenue during enforcing the different exchange rate systems, the other one is the analysis of the suitability of the different exchange rate systems.