Just how Undervalued is the Chinese Renminbi

Michael Funke and Jörg Rahn ()

Quantitative Macroeconomics Working Papers from Hamburg University, Department of Economics

Abstract: 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.

Date: 2005-04
New Economics Papers: this item is included in nep-bec, nep-cba, nep-fmk, nep-ifn, nep-sea and nep-tra
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Citations: View citations in EconPapers (106)

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Related works:
Journal Article: Just How Undervalued is the Chinese Renminbi? (2005)
Working Paper: Just how undervalued is the Chinese renminbi (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ham:qmwops:20504

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