Advanced Search
MyIDEAS: Login

A Note on Teaching the Yuan-Dollar Market vis-a-vis China's Dollar Holdings

Contents:

Author Info

  • Highfill Jannett

    ()
    (Bradley University)

  • Wojcikewych Raymond

    ()
    (Bradley University)

Abstract

The economic relationship between China and the U.S. is sufficiently ubiquitous in the media that few students will be unacquainted with the issue. Connecting the dots between China’s export-led growth, current account surpluses, currency peg, and its reserves (whether held by the central bank or in a sovereign wealth fund) is a key task in any undergraduate course that touches on the global economy. The present note proposes a method for understanding the relationship between two items in this list, the currency peg and reserves. Maintaining exchange rates different from equilibrium (as China has done) has consequences for the quantities of currencies that have to be bought and sold. The dollars accumulated have to be held in some form – a fact which also has had far reaching consequences for the global economy. The paper proposes using currency offer curves to facilitate teaching fixed exchange rates to undergraduates. Our method helps students “see” the process of pegging the yuan and the resulting accumulation of dollars.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.degruyter.com/view/j/gej.2012.12.issue-1/1524-5861.1863/1524-5861.1863.xml?format=INT
Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by De Gruyter in its journal Global Economy Journal.

Volume (Year): 12 (2012)
Issue (Month): 1 (March)
Pages: 1-9

as in new window
Handle: RePEc:bpj:glecon:v:12:y:2012:i:1:n:8

Contact details of provider:
Web page: http://www.degruyter.com

Order Information:
Web: http://www.degruyter.com/view/j/gej

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bpj:glecon:v:12:y:2012:i:1:n:8. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.