Abstract：In this paper, we develop the Renminbi s dynamic model to analyze the relationship between the flow directions of foreign direct investment (FDI) and the exchange rate s expectations on the basis of distinguishing the real interest rate from the desired interest rate. We find that the exchange rate expectation has a self-intensifying mechanism, which could have a reverse effect on the country s macroeconomic stabilization. We discuss the issue on how expectation impacts the macro economy and then analyze the conditions of successful intervention, which is helpful for policy management.
出版日期: 2006-06-05
引用本文:
. The directions of FDI and the self-intensifying expectations of the exchange rate and the effectiveness of sterilized intervention[J]. Frontiers of Economics in china, 2006, 1(2): 207-219.
LI Tiandong, XUE Shaoqiang, ZHU Qi. The directions of FDI and the self-intensifying expectations of the exchange rate and the effectiveness of sterilized intervention. Front. Econ. China, 2006, 1(2): 207-219.
