The Dollar Standard and Stability of China’s Macroeconomy

Guohua He () and Xinxin Chang ()
Additional contact information
Guohua He: Department of Finance, Wuhan University, Wuhan, China
Xinxin Chang: Department of Finance , Wuhan University, Wuhan, China

Journal for Economic Forecasting, 2013, issue 4, 186-204

Abstract: This paper studies how Dollar Standard influences the stability of macro-economy of China. Our conclusions are (1) the Dollar Standard influences the stability of macroeconomy of China through risk sharing mechanism of international commodity market and international financial market, (2) the size of an economy and the type of shocks affect the stability of China’s macro-economy. The Dollar Standard will increase the stability of macro-economy of China when the Chinese economic scale is small and internal shocks are weak. While the Dollar Standard will lead to the severe instability of China’s macro-economy, especially to the price and exchange rate, when the Chinese economy scale increases and exogenous shocks play a lion’s share.

Keywords: Dollar Standard; Stability of Macro-economy; New Keynesianism (search for similar items in EconPapers)
JEL-codes: E11 E37 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ipe.ro/rjef/rjef4_13/rjef4_2013p186-204.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rjr:romjef:v::y:2013:i:4:p:186-204

Access Statistics for this article

Journal for Economic Forecasting is currently edited by Lucian Liviu Albu and Corina Saman

More articles in Journal for Economic Forecasting from Institute for Economic Forecasting Contact information at EDIRC.
Bibliographic data for series maintained by Corina Saman ( this e-mail address is bad, please contact ).