IDEAS home Printed from https://ideas.repec.org/a/tpr/asiaec/v7y2008i3p61-95.html
   My bibliography  Save this article

Understanding the Sources of Friction in U.S.-China Trade Relations: The Exchange Rate Debate Diverts Attention from Optimum Adjustment

Author

Listed:
  • Wing Thye Woo

    (Brookings Institution, Washington DC, University of California, Davis, Central University of Finance and Economics, Beijing Brookings Institution, 1775 Massachusetts Avenue, NW, Washington, DC 20036 USA.)

Abstract

China has been accused of exchange rate manipulation that has caused large U.S. trade deficits, which have reduced U.S. welfare by increasing unemployment and reducing wages. In fact, the strong claims by some observers that the trade imbalances are deeply deleterious to China's welfare almost make it a moral imperative for the United States to use tariffs to force an renminbi (RMB) appreciation for China's own good. (c) 2008 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.

Suggested Citation

  • 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, Fall.
    • Handle: RePEc:tpr:asiaec:v:7:y:2008:i:3:p:61-95
    as

    Download full text from publisher

    File URL: http://www.mitpressjournals.org/doi/pdfplus/10.1162/asep.2008.7.3.61
    File Function: link to full text
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Ippei Fujiwara & Keisuke Otsu & Masashi Saito, 2008. "The Global Impact of Chinese Growth," IMES Discussion Paper Series 08-E-22, Institute for Monetary and Economic Studies, Bank of Japan.
    2. Wing Thye Woo, 2016. "The Key Obstacles to Success in Economic Catching Up by China," RBA Annual Conference Volume (Discontinued), in: Iris Day & John Simon (ed.),Structural Change in China: Implications for Australia and the World, Reserve Bank of Australia.
    3. Dennis Tao Yang, 2012. "Aggregate Savings and External Imbalances in China," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 125-146, Fall.
    4. Tang, Bo, 2015. "Real exchange rate and economic growth in China: A cointegrated VAR approach," China Economic Review, Elsevier, vol. 34(C), pages 293-310.
    5. Juan Carlos Cuestas & Bo Tang, 2015. "Exchange Rate Changes and Stock Returns in China: A Markov Switching SVAR Approach," Working Papers 2015024, The University of Sheffield, Department of Economics.
    6. Nathalie Aminian & K. C. Fung & Maurice K. S. Tse, 2016. "The Euro and the Yuan: Some Political Economy Considerations," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-13, June.
    7. Miaojie Yu, 2020. "China-US Trade War and Trade Talk," Springer Books, Springer, number 978-981-15-3785-1, June.
    8. W. Max Corden, 2009. "China's Exchange Rate Policy, Its Current Account Surplus and the Global Imbalances," Economic Journal, Royal Economic Society, vol. 119(541), pages 430-441, November.
    9. Woo, Wing Thye, 2011. "China's economic growth engine: The likely types of hardware failure, software failure and power supply failure," BOFIT Discussion Papers 8/2011, Bank of Finland Institute for Emerging Economies (BOFIT).
    10. Cao Emily Yixuan & Cao Yong & Prasad Rashmi & Shen Zhengping, 2011. "U.S.-China Exchange Rate Negotiation: Stakeholders' Participation and Strategy Deployment," Business and Politics, De Gruyter, vol. 13(3), pages 1-25, October.
    11. Meixin Guo & Lin Lu & Liugang Sheng & Miaojie Yu, 2018. "The Day After Tomorrow: Evaluating the Burden of Trump's Trade War," Asian Economic Papers, MIT Press, vol. 17(1), pages 101-120, Winter/Sp.
    12. Myeong Hwan Kim, 2014. "The U.S.--China Trade Deficit," The International Trade Journal, Taylor & Francis Journals, vol. 28(1), pages 65-83, March.
    13. Li Xie & Wing Thye Woo & Zhichao Zhang & Zhuang Zhang, 2015. "A Multiple-Goal Investment Strategy for Sovereign Wealth Funds: An Application to China," Asian Economic Papers, MIT Press, vol. 14(1), pages 78-97, Winter/Sp.
    14. Woo, Wing Thye, 2011. "China's economic growth engine : The likely types of hardware failure, software failure and power supply failure," BOFIT Discussion Papers 8/2011, Bank of Finland, Institute for Economies in Transition.
    15. James Xiaohe Zhang, 2011. "RMB Appreciation or Fiscal Stimulus, and their Policy Implications," Chapters, in: Lilai Xu (ed.), China’s Economy in the Post-WTO Environment, chapter 9, Edward Elgar Publishing.
    16. repec:zbw:bofitp:2011_008 is not listed on IDEAS
    17. Dene T. Hurley & Nikolaos Papanikolaou, 2018. "An Investigation of China‐U.S. Bilateral Trade and Exchange Rate Changes Using the Autoregressive Distributed Lag Model," Economic Papers, The Economic Society of Australia, vol. 37(2), pages 162-179, June.

    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:7:y:2008:i:3:p:61-95. 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.