Macroeconomic Regulation Effectiveness Under Intermediate Exchange Rate

As the international economy becomes more integrated,the financial openness and floating exchange rate will be more critical for the development of the world economy.Many developing countries,especially those emerging economies with rapid economic growth,are also gradually accepting the floating exchange rate.However,the corresponding financial crisis also came out.The emerging countries because of macroeconomic management is not perfect,can't immediately implement free floating exchange rate regime.After experiencing a series of Asian financial crises,the Latin American financial crisis,emerging economies began to choose the intermediate exchange rate system,allowing the exchange rate float in the government control.Therefore,how to maintain the stability of a country's macroeconomic mechanism has become an urgent problem to be solved in emerging economies while coordinating financial opening and exchange rate fluctuation.Based on this background,this paper studies the relationship between the intermediate exchange rate system and the effectiveness of macroeconomic regulation and control,it's necessary both from the theoretical and practical point of view.In this paper,we choose the emerging economies as reference,to use the method of literature,induction and deduction,normative analysis and empirical research.This paper aims to find out that the macroeconomic regulation and control of the emerging economies under the intermediate exchange rate system is effective,and it is better than the macro-control effect under the non-intermediate exchange rate system.And also give some suggestions of the development of Chinese exchange rate system and the effectiveness of macro-control.Based on the above research ideas and methods,this paper is divided into four parts: the first part is to clarify the relationship between the intermediate exchange rate system and the macro-control effect through the Mundell-Fleming model.We found that the fiscal and monetary policies under the intermediate exchange rate system are effective in the case of complete or incomplete capital flows.The second part is in the form of case analysis emerging economies,especially three representative countries,such as India,Malaysia and Peru.We use historical experience data and realistic performance to examine the evolution of its exchange rate system and the status of macroeconomic regulation and control,the results found that these countries in the implementation of the intermediate exchange rate system,which is indeed improved in terms of economic growth,inflation control,exchange rate competitiveness,etc.,The third part is use the perspective of empirical analysis of emerging Economies about 22 countries to build a static equilibrium model of macroeconomic regulation and control,using comparative analysis techniques to study whether the emerging economies in the implementation of the intermediate exchange rate system have better macro-control performance.The conclusion is that emerging economies with the intermediate exchange rate system under the inflation control is indeed better than non-intermediate exchange rate effect,and the use of monetary policy for inflation governance compared to non-intermediate exchange rate system is more effective.In the last part,based on the conclusion of the first three parts and the lessons of emerging economies,we puts forward the policy suggestions for the future development of RMB exchange rate system: To develop in a more floating direction,the elastic mechanism should also focus on the pace of capital opening.And to improve the effectiveness of China's macro-control path to explore: To establish and improve the macroeconomic management,and the exchange rate system to adapt to the coordination of fiscal and monetary policy in order to improve the effectiveness of macro-control.The innovation of this article is: the perspective is novel,specifically for the middle exchange rate under the system of macroeconomic regulation and control effect,and most of the scholars are not designed for this kind of exchange rate system and relationship of the effect of macroeconomic regulation and control,or only a part of the study.In addition,this paper extends the sample of research.Most of the research is only limited to the contrast research of our country in a managed floating exchange rate system before and after,so the sample space is smaller.This article selects 22 countries in emerging economies as sample,using panel data in the form of expanding the sample space.