第九章 汇率的决定（The ninth chapter is about the exchange rate decision）.doc

第九章 汇率的决定（The ninth chapter is about the exchange rate decision） The ninth chapter is about the exchange rate decision Section 1 theory of mint parity The ratio of the gold content of the two currencies is called Mint Par The gold standard is backed by gold material monetary system, it includes the gold standard, gold bullion standard and gold exchange standard. The gold standard system is the most typical form of the gold standard. It is the currency system with gold coins as its currency. Its prominent feature is that gold coins can be traded freely and freely, and gold can be freely input and output. Under this monetary system, the value of money is expressed in the gold content of specie, and there is a benchmark for the determination and change of exchange rate, that is, mint par value. The so-called Parity (Mint) is the ratio of gold in each country. For example, the implementation of the gold standard and the period from 1925 to 1931 before 1914, per pound of gold containing pure quantity of 113.0016 grains (Grain 1Grain=0.0648 g), while the United States was a dollar amount for 23.22 pure gold containing gel, therefore, the pound and the dollar is mint parity 1 pounds = US dollars =4.8665 Two, the application of coinage evaluation theory Mint parity is the basis of exchange rate determination under the gold specie standard. The real exchange rate fluctuates around a certain boundary of mint parity. This limit is the gold point. Second section purchasing power parity theory Swedish economist Gustav Cassel (Gustar Cassel), 1922 issued a monetary and foreign exchange theory after 1914, the theory of purchasing power parity (The Theory of Purchasing Power Parity), also referred to as PPP theory First, the main content of the theory of purchasing power parity Absolute purchasing power parity (Absolute, PPP) Relative purchasing power parity (Relative, PPP) Theory of Purchasing (Parity) was put forward by Swedish economist Cassell in 1922 in his book entitled money