The evolution stage of RMB exchange rate system

Systematic regulations made by society on the principles, methods, ways and institutions for determining, maintaining, adjusting and managing exchange rates. Traditionally, according to the range of exchange rate changes, exchange rate systems are divided into fixed exchange rate systems and floating exchange rate systems. Western countries implemented a fixed exchange rate system before 1970s. Later, due to the crisis, the Bretton Woods system collapsed and countries began to adopt floating exchange rate system.

Contents of exchange rate system:

1. Principles and basis for determining exchange rate. For example, based on the value of the currency itself or the value of the legal representative.

2. Methods of maintaining and adjusting the exchange rate. For example, whether to adopt the method of openly and legally appreciating or depreciating, or let it float in a limited way or be officially intervened;

3. Laws, systems and policies governing exchange rates. For example, the provisions on exchange rate and its scope of application in foreign exchange control in various countries.

4. Institutions that set, maintain and manage exchange rates, such as the State Administration of Foreign Exchange and the Foreign Exchange Stability Fund Committee.

macro-economy

The number of completed directories is less than expected;

The study of exchange rate system includes two basic perspectives: how is the exchange rate system formed and decided? How to choose the exchange rate system? The former belongs to empirical problems, while the latter belongs to normative analysis.

The classification of exchange rate system is the basis of studying the advantages and disadvantages of exchange rate system and the choice of exchange rate system, and the relationship between exchange rate system and macro-economy lies in how to classify exchange rate system first. Because different classifications may have different conclusions, the choice of exchange rate system has become the most controversial issue in the macroeconomic field.