Research On The Impact Of Floating Exchange Rate Regime On Macroeconomic Performance

The legalized of floating exchange rate regime was confirmed since Jamaica system. As subsequent economic globalization and financial integration, more and more countries began to choose the floating exchange rate regime. Besides, with the outbreak of the currency crisis, the desire for countries to select the floating exchange rate regime became stronger. The history of the floating exchange rate regime, let us have a strong curiosity for this kind of exchange rate regime. We want to know what impact the floating exchange rate regime will have on a country’s macroeconomic performance. And the exploring of this problem has very important guiding significance for the choice of RMB exchange rate regime in our country in the future. To this end, we choose the topic of "floating exchange rate regime’s impact on macroeconomic performance" to start this composition.We search for a large number of relevant literature around this topic. After the carding of the literature, we determine to do the study under the above topics using the method of normative analysis combined with empirical analysis. From the point of the full text, this paper includes five chapters altogether, also three component. The first part is the chapter 1 and chapter 3, which is the theory part of the article. Chapter 1 mostly reviews the literature at home and abroad,in which we find that there are large differences in theories. Chapter 3 is the theoretical basis of full text, mainly including two parts. Firstly illustrates the definition of macroeconomic performance in order to determine the macroeconomic performance of the research are based on economic growth and inflation. Then do theoretically analysis of macroeconomic performance under floating exchange rate regimes. The second part of this article consists of chapter 2 and chapter 4. Among them, chapter 2 mostly reviewing the history of the change of international exchange rate regime. And then analyze the choice of floating exchange rate regime since the collapse of the Bretton Woods system. Chapter 4 is about the empirical research in which we build the panel model to do multivariate regression analysis. The empirical results show that, in comparison, floating exchange rate regime in emerging economies has better performance against inflation than in developed economies. While the floating exchange rate regime did not have a positive effect to economic growth. The third part return to the reality of our country. From two aspects,inflation and economic growth,analyze our country’s macroeconomic operation. Then the author reviews the process of the reform of our country to analyze the trends of our country. Studies have shown that the quantitative managed floating exchange rate regime in China is determined by the economic environment at home and abroad. Selecting a managed floating exchange rate regime in the present stage is sized up with our country’s interests.The innovation of this article is mainly manifested in two aspects,which is the perspective and the innovation of research content. First of all, the existing literature on the relationship between exchange rate regime choice and macroeconomic performance in the study, mostly are based on the starting point in different countries or regions. While there are few research separated with one of the exchange rate regime. This article hopes to choose the starting point of floating exchange rate regime,to analyze the economic performance of floating exchange rate regime in different countries. Secondly, based on the analysis of the theory adopted in this paper, we focus on empirical research. The author make use of the RR natural classification to do the analysis of the floating exchange rate regime on macroeconomic performance. Of course, this paper still has a lot to improve.For example, in this paper, the macro economic performance only looked at two aspects of inflation and economic growth. As comprehensive multiple layers such as monetary crisis chosen, may be able to get more ideal results. Besides, this article selects the RR classification, which result in that the conclusion must be under a certain degree of restriction. If we can compare the results of a variety classifications of exchange rate regime, the results will be further improved.