Just how undervalued is the Chinese renminbi
Funke, Michael; Rahn, Jörg (01.10.2004)
Numero
14/2004Julkaisija
Bank of Finland
2004
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201408072097Tiivistelmä
Given that the value of China s currency has been hot topic recently, this paper explores the equilibrium levels of China s real and nominal exchange rates.Employing a Johansen cointegration framework, we focus on the behavioral equilibrium exchange rate (BEER) and permanent equilibrium exchange rate (PEER) models.Our results suggest that, while the renminbi is somewhat undervalued against the dollar, the misalignment is not nearly as exaggerated as many popular claims. JEL Classifications: F31, F32, F41, C32 Keywords: Renminbi, Yuan, China, Exchange Rate, Equilibrium Exchange Rate
Julkaisuhuomautus
Published in World Economy vol. 28, no 4 (2005), pp. 465-489