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2004•Unpublished venueRequires access

The Choice of RMB Exchange Rate and Its System

Kuang Tan-li

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Abstract

Keeping the stabilization of RMB exchange rate plays a positive role at home and abroad. At present, China should stick to the policy of stabilizing RMB exchange rate. However, the stabilization of exchange rate is not the ultimate aim. The present system of RMB exchange rate, which should be a managed floating one and meanwhile enhance its elasticity step by step, will lay a foundation for the would-be floating exchange rate.

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What this paper is about

Keeping the stabilization of RMB exchange rate plays a positive role at home and abroad. At present, China should stick to the policy of stabilizing RMB exchange rate. However, the stabilization of exchange rate is not the ultimate aim. The present system of RMB exchange rate, which should be a managed floating one and meanwhile enhance its elasticity step by step, will lay a foundation for the would-be floating exchange rate.

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Available abstract

Keeping the stabilization of RMB exchange rate plays a positive role at home and abroad. At present, China should stick to the policy of stabilizing RMB exchange rate. However, the stabilization of exchange rate is not the ultimate aim. The present system of RMB exchange rate, which should be a managed floating one and meanwhile enhance its elasticity step by step, will lay a foundation for the would-be floating exchange rate.

Key concepts: Renminbi, Exchange rate, China, Floating exchange rate, Exchange-rate regime, Economics, Monetary economics, Political science

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