Is the Chinese Currency Substantially Misaligned to Warrant Further Appreciation?
Abstract
This study provides quarterly time-series estimates of the misalignment in the REER of the Renminbi (RMB). The estimation is based on a commonly used economic approach, but with a wider and more up-to-date coverage of data and a more extensive use of econometric modelling techniques. Our estimates corroborate and explain most of the previous estimates. More importantly, our estimates demonstrate that there is no significant undervaluation in the REER of the RMB though downward misalignment exists in the trilateral rates between the RMB, US$ and euro. The finding refutes the claim that RMB appreciation is the primary and necessary solution to the current global trade imbalance. --(This abstract was borrowed from another version of this item.)
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Bibliographic Info
Article provided by Wiley Blackwell in its journal The World Economy.
Volume (Year): 34 (2011)
Issue (Month): 8 (08)
Pages: 1288-1307
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920
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Related research
Keywords:Other versions of this item:
- Duo Qin & Xinhua He, 2010. "Is the Chinese Currency Substantially Misaligned to Warrant Further Appreciation?," Working Papers 660, Queen Mary, University of London, School of Economics and Finance.
- Qin, Duo & He, Xinhua, 2010. "Is the Chinese currency substantially misaligned to warrant further appreciation?," Economics Discussion Papers 2010-8, Kiel Institute for the World Economy.
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Roland Döhrn & Tobias Kitlinski & Torsten Schmidt & Simeon Vosen, 2010. "Die wirtschaftliche Entwicklung im Ausland zur Jahreswende 2009/2010 - Belasteter Aufschwung," RWI Konjunkturbericht, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, pages 31, 03.
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