Is the Chinese currency substantially misaligned to warrant further appreciation?

Duo Qin and Xinhua He

No 2010-8, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This study provides quarterly time-series estimates of the misalignment in the REER of the Renminbi (RMB). The estimation is based on a commonly used economic approach, but with a wider and more up-to-date coverage of data and a more extensive use of econometric modelling techniques. Our estimates corroborate and explain most of the previous estimates. More importantly, our estimates demonstrate that there is no significant undervaluation in the REER of the RMB though downward misalignment exists in the trilateral rates between the RMB, US$ and euro. The finding refutes the claim that RMB appreciation is the primary and necessary solution to the current global trade imbalance.

Keywords: Real; exchange; rate; misalignment (search for similar items in EconPapers)
JEL-codes: F31 F41 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-cba, nep-ifn and nep-mon
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Citations: View citations in EconPapers (6)

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http://www.economics-ejournal.org/economics/discussionpapers/2010-8
https://www.econstor.eu/bitstream/10419/30020/1/618930507.pdf (application/pdf)

Related works:
Journal Article: Is the Chinese Currency Substantially Misaligned to Warrant Further Appreciation? (2011)
Working Paper: Is the Chinese Currency Substantially Misaligned to Warrant Further Appreciation? (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:20108

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