U.S.-China Exchange Rate Negotiation: Stakeholders' Participation and Strategy Deployment
Exchange rates influence a country's trading capability, foreign reserves and competitiveness. Recently, the exchange rate between the Chinese RMB and the U.S. dollar has been a contentious issue in both the United States and China. In this paper, we conduct a historical review of how the United States deployed negotiation strategies with China on the exchange rate issue and consider the degree to which it follows theoretical expectations. We then analyze the changing nature of the factors which shape exchange rate negotiations between the two nations in projecting alternative scenarios for the future of conflict resolution between the U.S. and China on this issue. We predict that the U.S. is likely to continue alternating between competition and collaboration, a negotiation cycle influenced by U.S. domestic politics, and China is less likely to continue with accommodation and compromise. The sequencing and timing of each nations negotiation strategy will lead to widely divergent consequences for the management of exchange rates and the world economy.
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.
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.
Volume (Year): 13 (2011)
Issue (Month): 3 (October)
|Contact details of provider:|| Web page: https://www.degruyter.com|
|Order Information:||Web: https://www.degruyter.com/view/j/bap|
References listed on IDEAS
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.:
- Bhagwati, Jagdish, 2008. "Termites in the Trading System: How Preferential Agreements Undermine Free Trade," OUP Catalogue, Oxford University Press, number 9780195331653, December.
- Kaplan, Stephen B., 2006. "The political obstacles to greater exchange rate flexibility in China," World Development, Elsevier, vol. 34(7), pages 1182-1200, July.
- Nicholas R. Lardy, 2005. "Exchange Rate and Monetary Policy in China," Cato Journal, Cato Journal, Cato Institute, vol. 25(1), pages 41-47, Winter.
- Ronald I. Mckinnon, 2005.
"China'S New Exchange Rate Policy: Will China Follow Japan Into A Liquidity Trap?,"
The Singapore Economic Review (SER),
World Scientific Publishing Co. Pte. Ltd., vol. 50(sp), pages 463-474.
- McKinnon Ronald I, 2006. "China's New Exchange Rate Policy: Will China Follow Japan into a Liquidity Trap?," The Economists' Voice, De Gruyter, vol. 3(5), pages 1-7, April.
- Ronald I. McKinnon, 2005. "China's New Exchange Rate Policy: Will China Follow Japan into a Liquidity Trap?," Discussion Papers 05-002, Stanford Institute for Economic Policy Research.
- Hiscox, Michael J., 1999. "The Magic Bullet? The RTAA, Institutional Reform, and Trade Liberalization," International Organization, Cambridge University Press, vol. 53(04), pages 669-698, September.
- Geng Xiao, 2008. "China's Exchange Rate and Monetary Policies: Structural and Institutional Constraints and Reform Options," Asian Economic Papers, MIT Press, vol. 7(3), pages 31-49, October.
- Yi Gang, 2008. "Renminbi Exchange Rates and Relevant Institutional Factors," Cato Journal, Cato Journal, Cato Institute, vol. 28(2), pages 187-196, Winter.
- Frieden, Jeffry A., 1991. "Invested interests: the politics of national economic policies in a world of global finance," International Organization, Cambridge University Press, vol. 45(04), pages 425-451, September.
- Paresh Kumar Narayan, 2006. "Examining the relationship between trade balance and exchange rate: the case of China's trade with the USA," Applied Economics Letters, Taylor & Francis Journals, vol. 13(8), pages 507-510.
- Wing Thye Woo, 2008. "Understanding the Sources of Friction in U.S.-China Trade Relations: The Exchange Rate Debate Diverts Attention from Optimum Adjustment," Asian Economic Papers, MIT Press, vol. 7(3), pages 61-95, October.
- Ronald McKinnon, 2006. "China's Exchange Rate Trap: Japan Redux?," American Economic Review, American Economic Association, vol. 96(2), pages 427-431, May.
- M Bahmani-Oskooee & Y Wang, 2007. "The Impact of Exchange Rate Volatility on Commodity Trade between the U.S. and China," Economic Issues Journal Articles, Economic Issues, vol. 12(1), pages 31-52, March.
- Jaime Marquez & John Schindler, 2007. "Exchange-rate Effects on China's Trade," Review of International Economics, Wiley Blackwell, vol. 15(5), pages 837-853, November.
- Imad A. Moosa, 2008. "Forecasting the Chinese Yuan-US Dollar Exchange Rate under the New Chinese Exchange Rate Regime," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 7(1), pages 23-35, April.
When requesting a correction, please mention this item's handle: RePEc:bpj:buspol:v:13:y:2011:i:3:n:6. 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.