CHINA'S NEW EXCHANGE RATE POLICY: WILL CHINA FOLLOW JAPAN INTO A LIQUIDITY TRAP?

Ronald McKinnon

The Singapore Economic Review (SER), 2005, vol. 50, issue spec0, 463-474

Abstract: Todays' American mercantile pressure on China to appreciate the renminbi against the dollar is eerily similar to the American pressure on Japan to appreciate the yen that began over 30 years ago. There are some differences between the two cases, but downward pressure on Chinese interest rates from foreign exchange risk could lead China into a zero interest rate liquidity trap much like the one that Japan has suffered since the mid-1990s.

Keywords: Exchange rates; China; Japan; interest rates; liquidity trap; deflation (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590805002153
Access to full text is restricted to subscribers

Related works:
Journal Article: China's New Exchange Rate Policy: Will China Follow Japan into a Liquidity Trap? (2006)
Working Paper: China's New Exchange Rate Policy: Will China Follow Japan into a Liquidity Trap? (2005)
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:wsi:serxxx:v:50:y:2005:i:spec0:n:s0217590805002153

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590805002153

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().