Capital Account Liberalization,Interest Rate Marketization and RMB Exchange Rate Regime Flexiblization

In open economy,capital flows,interest rate and exchange rate are mutually interactive,assort with each other and achieve automatic equilibrium.Interest rate marketization is the premise for capital account liberalization and exchange rate regime flexiblization;capital control degree affects interest rate marketization and RMB exchange rate regime flexiblization;interest rate and exchange rate interact with and conduct each other.The effect of macroeconomic policies depends not only on capital control degree,interest rate or exchange rate fluctuation,but also on the associated effect of capital control,interest rate and exchange rate.In the process of China's financial liberalization it is vital to handle the relationship between capital account liberalization,interest rate marketization and RMB exchange rate regime flexiblizationand,exert the effect of association and coordination between them and achieve internal and external economic equilibrium.