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Study Of The Rmb Exchange Rate Issue

Posted on:2005-08-25Degree:MasterType:Thesis
Country:ChinaCandidate:S J ZhangFull Text:PDF
GTID:2206360125452135Subject:Political economy
Abstract/Summary:PDF Full Text Request
In 2003, the exchange rate of RMB called the world's attention after Asia financial crisis of 1997. The deference is that in 1997, the attention focused on whether the RMB would devalue, however, today people concerns whether it should appreciate or not. The article attempts to answer why such a big change happened in a not very long time. Firstly, the article analyzes what decides the nominal exchange rate of RMB, and deepens the understanding for the fluctuation of RMB in the latest 20 years; secondly, the article demonstrates the fluctuation of RMB's real exchange rate is the most important because China is now transforming from the planned economy to the market economy, and its growth rate of economy is in the second place; in the third part, according to the paradox of three yuan induced from M-F model and the existing imperfect international monetary system, the article probes into the choosing of the system of exchange rate and attempt to provide a theoretical angle for the applying of macroeconomic policy; in the end, the article gives an analysis of the essence of RMB's appreciation and draws the conclusion that RMB's appreciation is an unavoidable result of the structural out-of-balance of global economy, so the appreciating of RMB and the pressure upon it must be dealt with deliberately.
Keywords/Search Tags:Nominal Exchange Rate, Real Exchange Rate, Purchasing Power Parity, Interest Parity, the Paradox of Three Yuan, the System of Exchange Rate
PDF Full Text Request
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