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SUMMARY:EXCHANGE RATES AND CHINESE DEVELOPMENT - Professor Zhang Hejie\, Z
 hejiang University of Technology\, Hangzhou\, China
DTSTART:20080506T160000Z
DTEND:20080506T173000Z
UID:TALK12240@talks.cam.ac.uk
CONTACT:Angels Varea
DESCRIPTION:ABOUT THE TALK\n\nProfessor Zhang Hejie will talk about the RM
 B (Chinese currency) exchange rate and its importance for the understandin
 g of Chinese development. This issue raises many questions in the world an
 d especially in developed\ncountries. With the opening of the Chinese mark
 et\, there are international and national crises often impacting on the Ch
 inese Economy and this will\ndamage Chinese development. Chinese macro eco
 nomic development strategy demands that the RMB exchange rate stability be
  maintained\, avoiding great changes.\n\nOne main aim of exchange rate pol
 icy is to maintain a stable real effective exchange rate. But\, there is a
  less effective exchange rate which can be fitted into the Chinese pattern
  of economy. A country should design its policy measures in order to adjus
 t its exchange rate when the market has biased its exchange rate aim－rea
 l exchange rate.\n\nThe key of designing an exchange rate regime based on 
 a basket of currencies is how to endowed concrete weights per currency in 
 a basket of currencies. A small country will suffer from most loss of any 
 policy aims if it only considers a basket of currencies as the traded weig
 ht. The theories on how to choose the weights of a basket of currencies ha
 ve been at the probing or exploratory stage at present. Our contribution i
 s having\nput modified relative labor productivity progress indicators int
 o the weights of a basket of currencies. The new model can consider the ex
 change rate mechanism from the viewpoint of both commercial and capital ma
 rkets\; this makes the model more robust against national and internationa
 l crises. Finally\, it should facilitate harmony in society in China and p
 romote\nChinese Development.\n\nABOUT THE SPEAKER\n\nProfessor Zhang Hejie
 \, is a professor in the College of Business Administration of Zhejiang Un
 iversity of Technology\, Hangzhou\, China and a Visiting Fellow in St Edmu
 nd's College and the Department of Land Economy.\nHis research interests i
 nclude the RMB Exchange Rate Regime\, Financial Institutions and Sustainab
 le Development. Among his publications are 'Building RMB Effective Exchang
 e Rate Index and Weight in China'\, Chinese Social Science Publishing Pres
 s\, June 2005\; 'Researches on Chinese Financial Institute Risk Mechanics 
 and Reform Route'\, Chinese Social Science Publishing Press\, Jan 2004\; a
 nd 'The Value of Bioecology'\, Chinese Taiwan Maochang Publishing Press\, 
 March 1996.
LOCATION:St Garden Room
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