In the era of globalization, because the national economy and the international economy are more and more closely linked, and the exchange rate is the "link" of this link, therefore, choosing the appropriate exchange rate system and implementing the corresponding economic policies has become an important issue that policy makers must consider under the condition of economic openness.
With the development of market economy and the acceleration of globalization, the stagnation of economic growth is no longer the main reason for the currency crisis.
Extended data
Dealing with the currency crisis:
1, local currency control: all financial assets can only be bought and sold through authorized savings institutions; Foreign funds need to hold shares for one year before they can cash out of the country.
2. Rapid financial adjustment and strong financial supervision: increase bank interest rates, prevent a large outflow of funds, and stabilize financial markets. When the market is relatively stable, the interest rate will be lowered in stages in time to reduce the impact on enterprises.
3. Necessary administrative control: Administrative control is definitely not the best choice, but at the critical moment when the crisis worsens, the necessity of administrative control is beyond doubt. The regulatory authorities should set a price range for goods and services that directly affect residents' lives, take some foreign exchange to stabilize prices, and take severe measures to crack down on malicious speculation that interferes with market order, including financial market order.
Baidu Encyclopedia-Currency Crisis