| Taking growth and stability as kernel economic goals, emerging markets (EMEs) possess specific domestic policies and regulations as a goup. However, emerging markets with different developing paths have diversified economic performance. Thus, revealing the relationship between exchange rate regimes and economic performance under the context of financial openness, we can shed light on the China and other EMEs' revolution in exchange rate regime, say, the smoothly transformation from fixed exchange rate regimes to a more flexible one.The dissertation is arranged as follows:Introduction explains the background, motif, methodology, structure and contributions of the study, and reviews the theritical and empirical evolution of studies on the exchange rate regimes and financial integration of different economies, especially the EMEs.Noticing the difference in de jure and de facto classification systems, Chapter 1 gives out a theoretical framework and examines the performance of growth and inflation under different exchange rate regimes, for advanced economies, EMEs and developing countries respectively. According to our result, peg regimes, especially the hard pegs can significantly reduce inflation. Meanwhile, exchange rate regimes hardly impact the growth in our sample. The economic performance is more directly impacted by the macroeconomic fundamentals.After concerning the interaction of ERRs (Exchange Rate Regimes) to growth and inflation, Chapter 2 provides a general equilibrium analysis framework, which includes the integration cost of intermediate, final goods and financial markets. Here we analyze the macroeconomic stability under different ERRs and financial openness. Parameters setting and calibration are conducted according to the character of EMEs, to carry out the numerical simulation in MATLAB. Combining the result of empirical regression, we find, although the impact is indirect and feeble, financial openness can release the volatility from fiscal shock. Bipolar exchange rate regimes can reduce the volatility from fiscal shock, while intermediate regime may enlarge it to some extent.Chapter 3 expands the analysis of Chapter 1 and 2, and emphasizes the coordinated effect of financial openness, exchange rate regimes and the financial crisis. Binary response model was established and we find:firstly, for all the samples, particularly emerging markets, sound fundamentals and sufficient international reserve are significantly important to prevent the crisis; secondly, out results have to some extent supported the "Bipolar View", and fixed exchange rate regime is more likely to prevent the crisis in our sample; last but not the least, opening up in capital market may share risks, strengthen the financial sector and then reduce the probability of financial crisis, however, the relation is weak for EMEs.Given the above study and character of emerging markets, Chapter 4 combines the trade and financial openness to the theory of exchange rate regime choice and trade. According to the empirical result, we find trade openness significantly influences the choice of ERRs for EMEs, and inflation is another factor these economies concern.Chapter 5 turns to the exit strategy and monetary policy implement. Following the exit point theories, it points the major obstacles and periodical characters in the reform. Then it compares the alternative nominal anchor choices, and proposes a gradual reform path with feasibility and steadiness.Chapter 6 focuses on the exchange rate regime modification and financial openness policy of China. Based on the theoretical framework and empirical result, we find the exchange rate regime of China is adapted following the corresponding economic theory, instead of government intervention. Reviewing the economic and policy performance of Japan after Plaza Accord, we think, before the deregulation on exchange rate and financial market, China should confirm what the "reasonable" exchange rate is, and to what extent the possible "overshooting" will be.
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