Thinking on China's Exchange Rate Policy under the Open Economy
DU Wen (College of Economics & Management, Southeast University, Jiangsu Nanjing,China,210096)
In view of the importance and effectiveness of exchange rate policy to the accomplishment of macroeconomic equilibrium, this article mainly analyzes the correlation between China's current fixed exchange rate system and the economic objects of internal equilibrium. Under an open economy, the government usually faces the quandary of how to combine exchange policy, monetary policy and capital controls efficiently. It is also the case with China, whose fixed exchange system has set limits to the realization of some important internal economic indicators. By analyzing China's worsening capital outflows and unemployment problem in recent years, we find in current international financial system, executing a really manageable floating exchange rate policy will be a better choice for furthering China's Opening and maintaining domestic economic stability.
【CateGory Index】： F832.6