IDEAS home Printed from https://ideas.repec.org/a/tpr/asiaec/v4y2005i1p40-75.html
   My bibliography  Save this article

Is a Change in the Renminbi Exchange Rate in China's Interest?

Author

Listed:
  • Barry Eichengreen

    (University of California, 549 Evans Hall, no. 3880, Berkeley, CA 94720-3880, USA)

Abstract

This paper reviews the controversy over China's exchange rate regime. Placing the issue in the context of the literature on exit strategies, it argues that the best time for China to exit from its peg is now while capital is flowing in and there is a tendency for the rate to appreciate. In contrast, waiting to exit until sentiment has turned around would be problematic. In addition, moving now to a managed float would help the Chinese authorities to gain better control of domestic credit conditions. The principal objections to this recommendation (viz., the banking system is weak, many state enterprises are loss making, and the capital account is not sufficiently open) are unconvincing. Finally, the impact on other countries is likely to be more complex and varied than suggested by other analyses.

Suggested Citation

  • Barry Eichengreen, 2005. "Is a Change in the Renminbi Exchange Rate in China's Interest?," Asian Economic Papers, MIT Press, vol. 4(1), pages 40-75, Winter.
    • Handle: RePEc:tpr:asiaec:v:4:y:2005:i:1:p:40-75
    as

    Download full text from publisher

    File URL: http://www.mitpressjournals.org/doi/abs/10.1162/asep.2005.4.1.40
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yin-Wong Cheung & Menzie D. Chinn & Eiji Fujii, 2009. "The Illusion of Precision and the Role of the Renminbi in Regional Integration," Chapters, in: Koichi Hamada & Beate Reszat & Ulrich Volz (ed.), Towards Monetary and Financial Integration in East Asia, chapter 13, Edward Elgar Publishing.
    2. Maurice Obstfeld, 2007. "The Renminbi's Dollar Peg at the Crossroads," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 25(S1), pages 29-56, December.
    3. Dai, Meixing, 2011. "Motivations and strategies for a real revaluation of the Yuan," MPRA Paper 30440, University Library of Munich, Germany.
    4. Meixing Dai, 2013. "In search of an optimal strategy for yuan’s real revaluation," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 11(1), pages 29-46, February.
    5. Forssbaeck, Jens & Oxelheim, Lars, 2007. "The transition to market-based monetary policy: What can China learn from the European experience?," Journal of Asian Economics, Elsevier, vol. 18(2), pages 257-283, April.
    6. Shaghil Ahmed, 2009. "Are Chinese exports sensitive to changes in the exchange rate?," International Finance Discussion Papers 987, Board of Governors of the Federal Reserve System (U.S.).
    7. Guonan Ma & Robert N. McCauley, 2007. "Do China's capital controls still bind? Implications for monetary autonomy and capital liberalisation," BIS Working Papers 233, Bank for International Settlements.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:asiaec:v:4:y:2005:i:1:p:40-75. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kelly McDougall (email available below). General contact details of provider: https://direct.mit.edu/journals .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.