Ⅱ. Effects of RMB appreciation on China
□ Exchange rate system of China
- The Chinese exchange rate system is the fixed exchange rate system which is fixed to the dollar. In 1994 January 1, China unified the official exchange rate and the market exchange rate and adopted a managed floating exchange rate system that restricted one day exchange rate fluctuation band with ±0.3% of the precedi
I. Introduction of currency wars
War using the exchange rate policy has been sustainable like Europe’s exchange rate policy in the early 20th century and Japan’s exchange rate policy after World War II. Recently, Economic purposes such as restoring slowdown of economy due to financial crisis and recovery of trade deficit are combined with political purpose and retaliatory currency manipul
rates cause losses in exchange rate profits. However, recently, the economic status of Korea has been recovering slowly and has also shown possibilities to continue.
The stabilization of such financial markets, aided the object-economy into stabilization as well. On the last quarter of 2008 which recorded a drop in GDP growth turned back to a positive growth of 0.1% on the first quarter of this
rates
(unit : 1 thousand)
All
Men
Women
All
Men
Women
- With measure of unemployment the number of unemployed people was decrease to 800, but expectation of business recovery and state of employment didn't emerge. So the number of unemployed people were swiftly over 1 million.
◇ The participation rates of economic action and employment rates keep the low level as compared with befo
2) Managing external debt using sustainability indicators
External debt management involves balancing resource mobilization and deployment as well as orderly repayment of future obligations. For sustainable debt management, policy makers need to project accurate debt dynamics that are sensitive to the way the current account deficits are being financed. If borrowed resources are not used produ