Study on the restricting factors of interest rate and exchange rate linkage effect

摘要

In the open economic conditions, interest rate as internal economic imbalance adjustment tool and exchange rate as external economic imbalance adjustment tool are closely related to each other, which have linkage effect. Study on the restricting fact ors of interest rate and exchange rate linkage effect is important to the stability of economic growth and financial safety. This article indicates that the level of market-driven, economic opening degree and policy objectives of central bank will restrict the linkage effect of interest rate and exchange rate.