The RMB Debate: Empirical Analysis on the Effects of Exchange Rate Shocks in China and Japan

Soyoung Kim and Yoonbai Kim ()

No 132012, Working Papers from Hong Kong Institute for Monetary Research

Abstract: For a better understanding of the ongoing debates on the RMB, this paper investigates the effects of exchange rate shocks on output and the current account for China and Japan. We use structural vector auto-regression models and find that yen appreciation reduces current account surpluses while having no strong effect on output in Japan. RMB appreciation, on the other hand, has an insignificant effect on the current account, although it tends to reduce output in China. For China, dollar pricing with vertical trade integration seems responsible for the insignificant effect on the current account.

Keywords: Renminbi Appreciation; Current Account Imbalance; VAR; Exchange Rate Shocks; Recession (search for similar items in EconPapers)
Pages: 34 pages
Date: 2012-05
New Economics Papers: this item is included in nep-mon, nep-opm and nep-tra
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.hkimr.org/uploads/publication/12/ub_ful ... o-13_2012-final-.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.hkimr.org/uploads/publication/12/ub_full_0_2_320_wp-no-13_2012-final-.pdf [301 Moved Permanently]--> http://www.aof.org.hk/research/HKIMR/uploads/publication/12/ub_full_0_2_320_wp-no-13_2012-final-.pdf [301 Moved Permanently]--> https://www.aof.org.hk/research/HKIMR/uploads/publication/12/ub_full_0_2_320_wp-no-13_2012-final-.pdf)

Related works:
Journal Article: The RMB Debate: Empirical Analysis on the Effects of Exchange Rate Shocks in China and Japan (2016)
Working Paper: The RMB Debate: Empirical Analysis on the Effects of Exchange Rate Shocks in China and Japan
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:hkm:wpaper:132012

Access Statistics for this paper

More papers in Working Papers from Hong Kong Institute for Monetary Research Contact information at EDIRC.
Bibliographic data for series maintained by HKIMR ().