Study On Maintenance And Adjustment Of Exchange Rate Target Zone

The theory of exchange rate Target Zone which was posed by Williamson is being expanded on the theoretic aspect after it was improved by Krugman and so on. But there are few achievements about how to maintain and adjust exchange rate Target Zone.The purpose of this thesis is to provide a precise framework for the analysis of maintenance and adjustment of Target Zone. In addition, it emphasizes how to choose the opportunities and means of intervention and elaborates the successful example of exchange rate Target Zone Application in Singapore. According to this, it provides the program of the RMB Target Zone.The thesis is organized as follows. Section 1 presents the importance of choosing this question for study and related achievements. Section 2 characterizes the intervenient opportunities and means of maintaining and adjusting Target Zone. Besides, it provides the analysis framework for maintenance and adjustment of Target Zone by founding government effective function. Section 3 examines the results of Target Zone Application in Singapore. Section 4 characterizes the plan of designing the RMB Target Zone according to Singapore's successful experience.It must be mentioned that the thesis has some new ideas of that the information is newer and it deeply studies the maintenance and adjustment of Target Zone. Meanwhile, it provides a statics analysis of Singapore MAS's credibility and the reason why MAS's credibility is good.