ABSTRACT
The following study uses international experience as a reference point in evaluating the following questions. First, what are the causes of currency appreciation, as viewed from theory and international practice? Second, how have economic policy makers in other countries dealt with pressure on their currencies to appreciate? Third, what have the consequences been of measures to deal with currency appreciation, particularly with respect to foreign trade, the balance of trade, the terms of trade, commodity prices, economic growth, and economic structure? Fourth, in considering reform of the RMB exchange rate system, what lessons can be derived from the experience of other countries?
