The Effects of External Shocks in an Open Economy and Exchange Rate Arrangements - Youth Economic Scholars' Collection of Fudan University

Author: Sun Lijian
Publisher:
Publish Date: 2005-09-01
Features: The central idea of this book is that the exchange rate system arrangements in emerging market countries should first be based on a scientific exchange rate formation mechanism, while also considering whether the country's economic structure has the ability to withstand external shocks from trade and capital inflows. Only in this way can we correctly understand the formation and impact mechanisms of currency crises, effectively establish foreign exchange and capital management systems, and establish a reasonable exchange rate system suitable for the country's economic development. Only under this reasonable exchange rate arrangement can we implement supporting macro-control policies, thereby enhancing the government's credibility and the country's economic development strength. This book takes an open economy as a premise and focuses on emerging market countries such as East Asia and China as the research subjects, studying how these countries determine exchange rate issues under multiple external shocks. The book is divided into five parts, and the author elaborates on five aspects: modern exchange rate theory systems, the role of nominal exchange rate changes in international trade, capital inflows and their impacts, currency crises and foreign exchange controls, and the selection of exchange rate systems. The author strives to be at the forefront of both theory and practice on this issue. The book combines academic rigor, timeliness, and policy relevance.