Interest Rate-Exchange Rate Mechanism And Exchange Rate Regime Reform Of China

Interest rate and Exchange rate reflect various capital prices in different market. Both are important tools for adjusting macro-economy and realizing resources liquidity. After china entried WTO with the obvious nature of openness of macro-economy. The relationship of International economy become more and more closer. Interest rate and Exchange rate fluctuate more often, which makes china face more macro-economy financial risk. Under capital restrained condition in China, Interest rate play an important role in adjusting inner economy, so as Exchange rate in outer-economy. They work together in equilibrium economy and decreasing rate risk. both at home and abroad . Present, the reformation of interest rate enters into substantiality stage and inelastic manage-floated Exchange rate regime meet our requires The paper probing deeper into interest rate-Exchange rate mechanism, seeking an Exchange rate regime prompt integrity and economy development.The paper is divided into there section and conations six chapters:Fist section is chapter 1: introduce interest rate-Exchange rate, mainly analyzes the development of internal and external theories about interest rate and Exchange rate in order to build the theoretical basic a for paper.Second section contains chapter 2 to chapter 5 this is the core of paper.Chapter 2: analyze the theory of interest rate parity and its resolution in China.Chapter 3: discuss the affection of financial policy and monetary policy to interest rate and Exchange rate under fixed and floated Exchange rate regime conditions.Chapter 4: this chapter analyzing focus on interest rate and exchange rate effect each other and analyzes interest rate and exchange rate in china form empirical study.Chapter 5: analyze capital flows and fleeing under interest rate-Exchange rate mechanism. Third section is chapter 6 the end of paper, analyzes the orientation to reform RMB exchange rate opening capital account.