The fog encircling the renminbi debate

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)12_Chapter in an edited book (Author)Not applicablepeer-review

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Author(s)

Detail(s)

Original languageEnglish
Title of host publicationExchange Rate Systems and Policies in Asia
PublisherWorld Scientific Publishing Co.
Pages119-134
ISBN (Print)9789812834515, 9789812834508
StatePublished - 1 Jan 2008
Externally publishedYes

Abstract

We assess some recently advanced arguments for the claim that the RMB is undervalued. These arguments are those based on the direct valuation of the RMB, trade imbalances, the accumulation of foreign exchange reserves, and the degree of policy dependence. The extant evidence does not support a strong verdict regarding RMB undervaluation that meets the statistical standards of academic empirical studies. One interpretation is that the evaluation of the equilibrium RMB exchange rate is far more complicated than it appears. Another view is that the data are insufficiently informative. Some related policy concerns are also discussed.

Research Area(s)

  • Exchange rate uncertainty, International reserves, Policy dependence, Trade surplus

Citation Format(s)

The fog encircling the renminbi debate. / Cheung, Yin-Wong; Chinn, Menzie D.; Fujii, Eiji.

Exchange Rate Systems and Policies in Asia. World Scientific Publishing Co., 2008. p. 119-134.

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)12_Chapter in an edited book (Author)Not applicablepeer-review