Will an Appreciation of the Renminbi Rebalance the Global Economy? A Dynamic Financial CGE Analysis
We use a dynamic CGE model of China with a financial module and sectoral detail to examine the real and nominal impacts of a nominal exchange rate appreciation alone, fiscal policy alone and a combined fiscal and monetary package to redress China's external imbalance. The exchange rate policy alone is ineffective in both the short run and long run at reducing China's current account surplus. Fiscal policy is less effective than a combination of fiscal and monetary policy in reducing the surplus.
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- Ronald McKinnon & Gunther Schnabl, 2009. "China's financial conundrum and global imbalances," BIS Working Papers 277, Bank for International Settlements.
- XING, Yuqing, 2006.
"Why is China so attractive for FDI? The role of exchange rates,"
China Economic Review,
Elsevier, vol. 17(2), pages 198-209.
- Yuqing Xing, 2004. "Why is China so Attractive for FDI The Role of Exchange Rates," Working Papers EMS_2004_04, Research Institute, International University of Japan.
- Horridge, Mark & Wittwer, Glyn, 2008. "SinoTERM, a multi-regional CGE model of China," China Economic Review, Elsevier, vol. 19(4), pages 628-634, December.
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