Supporters of floating exchange rates this explanation: the adjustment under the Bretton Woods system is not fair， fixed exchange rate system called "solved" the issue of international coordination of monetary policy is only to the United States a leading position， while the United States eventually has abused this Under the floating exchange rate system， countries have gradually realized the importance to international Hezuo， and actively explore new ways of international cooperation to strengthen international cooperation after the floating exchange rate system Hui Shi De 经济 better (Pro， you give if the translation and a half articles， I gave chase ) (5) the illusion of greater autonomy Critics argue that floating exchange rates: domestic monetary policy is not entirely free， is also affected by changes in the exchange rate For example， when a country increases the money supply， devaluation of the currency makes imported goods prices rise in order to ensure standard of living does not drop， the workers will be demands for more money to promote more inflation， in addition， imports of intermediate inputs for production， The devaluation makes the production costs， increase The floating exchange rate would accelerate the rise in the price In addition， critics also believe that: a floating exchange rate isolated the role of foreign inflation is For example， foreign inflation， foreign output increase， while foreign output will increase while the increase in foreign demand for domestic goods， increasing their Supporters of floating exchange rates this explanation: States can be a managed floating exchange rate to reduce the above 5， since 1973 the experience of floating exchange rate system 1， the experience of running a floating exchange rate system is neither fully support the agreed point of view it does not confirm the Makes the economy insulated from inflation point of view the long term is important， in the short term but may not be set The role of the exchange rate as macroeconomic objectives in the floating exchange rate system makes the central bank enjoys autonomy under the No empirical data for the "vicious cycle" to provide Flexible exchange rate would hamper international trade and investment point of view is not supported by credible Durable fixed exchange rate may not be achieved unless the creation of a single 2， but draw a clear conclusion: International cooperation is We use the "two-model" (HH-FF model) to illustrate how the behavior of a country affect its trading partners over the economy， from which you can see the importance of coordination of national Domestic product market equilibrium (HH curve): Y = C (Y-T) + I + G + CA (EP * / P， Y-T， Y *- T *)， Y is national output， T is the national tax ， C (Y-T) is consumption， I investment， G is government purchases， E is the currency exchange rate， P is the domestic price level， P * is foreign price level， Y * is the foreign output level， T * is the foreign tax ， CA (EP * / P， Y-T， Y *- T *) is the national current account Foreign goods market equilibrium (FF curve): Y *= C * (Y *- T *) + I * + G *- CA (EP * / P， Y-T， Y *- T *) / (EP * / P)， C * (Y *- T *) is the foreign consumer， I * is foreign investment， G * is the foreign government purchases Combining these two (Figure 11) Its expansionary monetary policy (Figure 12) The increase in money supply， market equilibrium level of national output increased， reduction in the level of foreign output market equilibrium， a solemn act known as "beggar thy neighbor" policy， the cost of damage to neighboring countries to improve their own Its expansionary fiscal policy (Figure 13) Both domestic and foreign output increased， and the cycle of long-term good: Y up -> Y * up -> Y up， a country expansionary fiscal policy will boost the world economy and achieve a good win-win A country's economic policies have spillover effects which affect the economies of other countries， that is the interdependence between countries， because of this dependency， national policy coordination in promoting the sound development of world economy has a very important 6 Conclusion: the direction of the floating exchange rate reform Fixed exchange rate system in the near future is unlikely to Maintain the fixed exchange rate because the long term need for strict control of capital flows， and such efforts are doomed to a lack of credibility， not for So hard to bring its fixed exchange rate system supports the benefits they With the national policy coordination between the increase in the operation of a floating exchange rate system would be more Enhancing international cooperation and coordination is the current floating exchange rate system reform and the overall direction of the main
