The controversy in the field of exchange rate and regimes lies in the determination of real exchange rate, but the theories haven’t been unified yet, and the result of many models was so amazing, contradictory with each other. The theory of exchange rate and regime has been developed for almost hundred years, but so many puzzles still exist. To summarize exchange rate theory and models, we find almost in the basic supposition of purchasing power parity, the interest rate parity and productivity differential. Whether from the principle of exchange rate determination, or the economic development, as well as the highest ideality both in East and West civilization, the old basic supposition seems to be irrational. The social welfare parity is a new basic supposition in exchange rate and regime theory which this article proposed. In such a basis, we may promulgate the essence of the exchange rate determination and the exchange rate regime choice better from a new angle, especially about such a question in emerging market country.

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