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Introduction 引言

An exchange rate is the rate at which one currency is exchanged on another one. This rate differs from country to country and depends on many economical variables, the main of which are the general balance and disbalance of economy, monetary and fiscal policy, the state of the budget, international policy, the condition and development of the country’s economy compared to the world situation and dominating countries, purchasing power of the currency, and other internal and external factors.

汇率是一种货币交换另一种货币。这种比率因国家的不同而不同，取决于许多经济变量。主要是经济的总体平衡和不平衡,货币和财政政策,政府的预算,国际政策的条件和国家经济的发展对世界形势和支配国家相比,人民币的购买力和其他内部和外部因素。

The history of world exchange rate systems shows us that the world community (in its majority) has in fact shifted from the system of fixed exchange rates to floating exchange rate system. Currently there exist different combinations of floating and fixed exchange rate systems, together with specific economical instruments, created for exchange rate regulating.

世界汇率系统的历史向我们表明,国际社会(在其多数)实际上从固定汇率制度转变为浮动汇率制度。目前存在不同的浮动和固定汇率系统,组合在一起与特定的经济工具,创建汇率调节。

This essay is aimed to describing the existing exchange rate systems, their impact on local and international economy and analysis of pros and cons of each system. This Essay also contains an attempt to show the examples of exchange rate management in different countries, and analyze their consequences; the return effects of exchange rate management on the condition of major economical variables have also been regarded and a conclusion basing on all the above-listed material has been made.

1. History of exchange rate systems

1.1. Commodity money

Since the development of production and a number of divisions of labor there existed such a phenomenon as commodity money. There was no other monetary system until 17th century when there appeared coins having an intrinsic value, not linked with commodity. Usually the value of the coin was associated with the content of gold in the coin. The exchange rate between different coins and different currencies depended on the content of gold in the coin as well, and equaled to the relative content of gold in the coins.

1.2. Paper money

In 17th century banks started issuing own banknotes which had the same purchasing power as coins and were backed by precious metals in the banks. People could convert these banknotes into precious metals if they wished so. It is important to note that this backing was not 100%.

1.3. The gold standard

With the development of this system (the so-called fractional reserve banking) and with the development of international relations the idea of the gold standard appeared. In 1870 major countries had an agreement to base their exchange rates on the gold standard: the amount of gold which was backed for the banknote by the bank. Therefore the exchange rates between different countries equaled to the ratio of gold content linked with the currencies. This system existed until 1913, and, as we can see, represented the fixed exchange rate idea (since the gold co本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。