Exchange Rate System Selection: Jilin University Philosophy and Social Sciences Academic Series

Author: Ding Yibing
Publisher:
Publish Date: 2005-11-01
Features: Exchange rate regimes are a key issue in international economics research. Based on a comprehensive and systematic review of relevant theoretical literature, this book employs open economy macroeconomics theory and econometric analysis tools to examine the choice of exchange rate regimes for developing countries, considering both their domestic economic development process and their process of opening up to the outside world. The book argues that the principles guiding developing countries in choosing exchange rate regimes differ significantly from those of developed countries. As their economies develop, the preferred exchange rate regimes of developing countries will undergo a dynamic transformation from floating to fixed to floating. Additionally, in a certain sense, exchange rate regimes are an endogenous variable for developing countries, which places them, particularly emerging market economies, in a dilemma of exchange rate regime choice. Under contemporary conditions, regional currency cooperation or even monetary integration may be an effective way to resolve this dilemma. For instance, in the current East Asian region, regional currency cooperation should be gradually strengthened conditionally to address the challenges of exchange rate regime choice.