Study On Linkage Between Interest Rate And Exchange Rate Under The Opening Financial Market Of Our Country

Uuder the opening financial market, a country's monetary market and international monetary market and foreign exchange market will be integrated. Interest rate and exchange rate are the two powerful adjustment of monetary market and foreign exchange market, and are also the main method of the Central Bank monetary policy, they have strong linkage restriction relations in the utilization and the conduction process. Not only the interest rate change has the influence on the exchange rate's formation,but also the exchange rate change has the influence on the interest rate level. But under our country's present interest rate exchange rate system, the effective interest rate exchange rate linkage mechanism does not exist. During the monetary policy's execution, there always are certain contradiction and conflict between interest rate policy and exchange rate policy, this kind of conflict lies in lack of elastific exchange rate production mechanism and the marketable interest rate mechanism. Therefore when carries on exchange rate exchange rate system reform, monetary policy reform and financial market reform, should pay attention to the coordinated development and the whole balance, enhance interest rate and exchange rate linkage mechanism, advances the exchange rate marketability coordinate mechanism which coordinates with interest rate marketability. Positively.The whole paper divides to five parts,the first part (introduction) points outall the studies about linkage between interest rate and exchange rate in the worldwide and the significance and the background of this subject.The second part studies theoretical models of interest rate and exchange...