The current exchange rate regime of China is just like the US dollar-pegged exchange rate re- gime, which weakens the effectiveness of monetary policy but increases the effectiveness of fiscal policy. Since the scope of implementing the fiscal policy is quite narrow, it is necessary to promote the effectiveness of mon- etary policy by enlarging the elasticity of the RMB exchange rate regime so as to stimulate the rapid develop - ment of the Chinese economy effectively.
展开▼
