Exchange Rate Misalignments: Historical Experience of Japan, Germany, Singapore and Taiwan Compared to China Today
AbstractThis is a comparative study on the historical experience of real effective exchange rate (REER) misalignment of Japanese yen, Deutsche mark, Singapore dollar and Taiwan dollar, with regard to the recent dispute over the Renminbi (RMB) valuation. Panel-based misalignment estimates of the four economies show that net foreign asset build-up does not necessarily result in currency misalignment, and the recent misalignment of RMB is not unprecedented in terms of magnitude, duration or currency coverage, whereas volatility in REER misalignment is likely to propagate to inflation of the home economy concerned. The assertion of 'RMB rate manipulation' thus lacks empirical support.
Download InfoIf 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.
Bibliographic InfoPaper provided by Queen Mary, University of London, School of Economics and Finance in its series Working Papers with number 667.
Date of creation: Jul 2010
Date of revision:
REER misalignment; RMB; Yen; D-mark; Singapore dollar; Taiwan dollar;
Find related papers by JEL classification:
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-17 (All new papers)
- NEP-CBA-2010-07-17 (Central Banking)
- NEP-MON-2010-07-17 (Monetary Economics)
- NEP-SEA-2010-07-17 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fumio Hayashi & Edward C. Prescott, 2002.
"Data Appendix to The 1990s in Japan: A Lost Decade,"
hayashi02, Review of Economic Dynamics.
- Ronald MacDonald & Preethike Dias, 2007. "Behavioural equilibrium exchange rate estimates and implied exchange rate adjustments for ten countries," Working Papers 2007_12, Business School - Economics, University of Glasgow.
- Menzie D. Chinn, 1998.
"Before the Fall: Were East Asian Currencies Overvalued?,"
NBER Working Papers
6491, National Bureau of Economic Research, Inc.
- Chinn, Menzie D., 2000. "Before the fall: were East Asian currencies overvalued?," Emerging Markets Review, Elsevier, vol. 1(2), pages 101-126, September.
- Song, Chi-Young, 1997. "The Real Exchange Rate and the Current Account Balance in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 11(2), pages 143-184, June.
- Gianluca Benigno & Christoph Thoenissen, 2002.
"Equilibrium exchange rates and supply-side performance,"
Bank of England working papers
156, Bank of England.
- Gianluca Benigno & Christoph Thoenissen, 2003. "Equilibrium Exchange Rates and Supply-Side Performance," Economic Journal, Royal Economic Society, vol. 113(486), pages C103-C124, March.
- Benigno, Gianluca & Christoph Thoenissen, 2002. "Equilibrium Exchange Rates and Supply Side Performance," Royal Economic Society Annual Conference 2002 19, Royal Economic Society.
- Se-Eun Jeong & Jacques Mazier, 2003.
"Exchange Rate Regimes and Equilibrium Exchange Rates in East Asia,"
Presses de Sciences-Po, vol. 54(5), pages 1161-1182.
- Se-Eun Jeong & Jacques Mazier, 2003. "Exchange Rate Regimes and Equilibrium Exchange Rates in East Asia," Revue économique, Presses de Sciences-Po, vol. 54(5), pages 0-0.
- Fumio Hayashi & Edward C. Prescott, 2000.
"The 1990s in Japan: a lost decade,"
607, Federal Reserve Bank of Minneapolis.
- Ronald McKinnon & Gunther Schnabl, 2003.
"China: A Stabilizing or Deflationary Influence in East Asia? The Problem of Conflicted Virtue,"
03007, Stanford University, Department of Economics.
- Schnabl, Gunther, 2003. "China: a stabilizing or deflationary influence in East Asia?The problem of conflicted virtue," TÃ¼binger DiskussionsbeitrÃ¤ge 263, University of Tübingen, School of Business and Economics.
- Ronald McKinnon & Gunther Schnabl, 2003. "China: A Stabilizing or Deflationary Influence in East Asia? THe Problem of Conflict Virtue," Working Papers 232003, Hong Kong Institute for Monetary Research.
- Christoph Fischer & Karlhans Sauernheimer, 2002. "A History of the D-Mark's Real External Value," Australian Economic Papers, Wiley Blackwell, vol. 41(4), pages 480-498, December.
- MacDonald, Ronald & Ricci, Luca Antonio, 2007. "Real exchange rates, imperfect substitutability, and imperfect competition," Journal of Macroeconomics, Elsevier, vol. 29(4), pages 639-664, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nick Vriend).
If references are entirely missing, you can add them using this form.