The Overvaluation of Renminbi Undervaluation

Yin-Wong Cheung, Menzie Chinn and Eiji Fujii

No 12850, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We evaluate whether the Renminbi (RMB) is misaligned, relying upon conventional statistical methods of inference. A framework built around the relationship between relative price and relative output levels is used. We find that, once sampling uncertainty and serial correlation are accounted for, there is little statistical evidence that the RMB is undervalued. The result is robust to various choices of country samples and sample periods, as well as to the inclusion of control variables.

JEL-codes: F3 F4 (search for similar items in EconPapers)
Date: 2007-01
New Economics Papers: this item is included in nep-cba
Note: IFM
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Citations: View citations in EconPapers (147)

Published as Cheung, Yin-Wong & Chinn, Menzie D. & Fujii, Eiji, 2007. "The overvaluation of Renminbi undervaluation," Journal of International Money and Finance, Elsevier, vol. 26(5), pages 762-785, September.

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Journal Article: The overvaluation of Renminbi undervaluation (2007)
Working Paper: The Overvaluation of Renminbi Undervaluation (2007)
Working Paper: The Overvaluation of Renminbi Undervaluation (2007)
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