Dollar standard, overshooting of exchange rates and RMB exchange rate regime reform

Overshooting of exchange rates is an important factor in exchange rates regime choice, so it is valuable to study the overshooting of RMB exchange rate for RMB exchange rate regime reform. This paper analyzes the influence of Dollar Standard on overshooting of exchange rate with dynamics general equilibrium method under new open economics macroeconomics model. It reveals that the greater the influence on Chinese import and export by dollar standard, the more severe overshooting of RMB exchange rate. However, it´s a necessary trend to adapt more floating exchange rate regime because of the rising of Chinese GDP, international status of RMB and the reducing of dollar standard´s influence on China.