Rebalancing Growth in China: An International Perspective
Agnès Benassy-Quere (),
Benjamin Carton () and
Working Papers from CEPII research center
Based on simulations of an original DGE model of the US, Chinese and Euro area economies with financial frictions and various monetary regimes, the paper shows that the contribution of China in global rebalancing should primarily rely on structural policies aiming at reducing aggregate savings in China. The role of the exchange-rate regime would be minor under standard monetary policies, although more important if monetary policies in advanced countries are constrained, as they are today. Finally, relying only on a change in China’s monetary regime (without structural reforms) could end up in delaying rather than accelerating the rebalancing, depending on China’s policy regarding accumulated reserves.
Keywords: Global imbalances; EXCHANGE RATE; capital controls; CHINA (search for similar items in EconPapers)
JEL-codes: F32 F42 F47 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-cmp, nep-dge, nep-opm and nep-tra
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Journal Article: China and global rebalancing: A two-country approach (2013)
Working Paper: China and global rebalancing: A two-country approach (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepidt:2011-08
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