Exchange rate misalignments : A comparison of China today against recent historical experiences of Japan, Germany, Singapore and Taiwan

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dc.contributor Bank of Finland
dc.contributor.author He, Xinhua
dc.contributor.author Qin, Duo
dc.contributor.author Liu, Yimeng
dc.date.accessioned 2011-09-22T08:00:03Z
dc.date.available 2014-09-22T08:00:03Z
dc.date.issued 2011
dc.identifier.isbn 978-952- 462-717-7
dc.identifier.issn 1456-5889
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/8035
dc.description.abstract The familiar claim of Chinese currency manipulation is generally asserted without reference to empirical evidence. To investigate the legitimacy of the claim, we ask if the undervalued misalignment found in the real effective exchange rate (REER) of the Chinese renminbi (RMB) over the past decade has any recent historical precedents. Four cases are examined: the Japanese yen, the Deutsche mark, the Singapore dollar and the Taiwan dollar. Panel-based misalignment estimates of the REER of the four currencies are obtained using quarterly data from the late 1970s to the early 2000s. Our estimates suggest that there are precedents to the recent misalignment of the RMB in terms of magnitude, duration or breadth of currency coverage, and that a net build-up in foreign asset does not necessarily result in currency misalignment. In addition to finding little empirical justification for the claim of Chinese currency manipulation, we note that REER misalignment runs a risk of propagating inflation in the home economy.
dc.format.extent 33 s.
dc.language.iso eng
dc.relation.ispartofseries BOFIT Discussion Papers
dc.rights https://helda.helsinki.fi/bof/copyright
dc.subject valuuttakurssit
dc.subject Kiina
dc.subject Japani
dc.subject taloushistoria
dc.subject ulkomaankauppa
dc.subject Saksa
dc.subject Taiwan
dc.subject Singapore
dc.subject inflaatio
dc.subject SP
dc.subject RP
dc.subject RP ST
dc.subject Bofit-kokoelma
dc.subject DEM
dc.subject JPY
dc.subject RMB
dc.title Exchange rate misalignments : A comparison of China today against recent historical experiences of Japan, Germany, Singapore and Taiwan
dc.type Sarjajulkaisu
dc.identifier.urn URN:NBN:fi:bof-201408072032
dc.series.name BOFIT Discussion Papers
dc.series.year 2011
dc.series.number 22/2011
dc.series.sortingnumber 22
dc.date.publication 19.8.2011
dc.identifier.doi 10.1080/14765284.2012.699703
dc.contributor.orgunit Institute for Economies in Transition (BOFIT)
dc.description.publication Published in Journal of Chinese Economic and Business Studies, Volume 10, Issue 3, August 2012, Pages 247-266

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