A note on the debate over Renminbi undervaluation

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 publicationChina and Asia in the Global Economy
PublisherWorld Scientific Publishing Co.
Pages155-187
ISBN (Print)9789814335270, 9814335266, 9789814335263
StatePublished - 1 Jan 2011
Externally publishedYes

Abstract

China’s currency, the renminbi (RMB), has occupied a central role in the debate over the sources of global imbalances. As policymakers around the globe seek to establish the foundation for a sustained recovery from the world’s most serious financial crisis in over 70 years, the pressure on the Chinese currency regime continues to mount. Nevertheless, there appears little consensus regarding the extent to which the RMB is actually undervalued despite the fact that the issue has been intensely contested for several years. In reviewing the debate, the current paper points to some pitfalls in assessing the extent of the RMB misalignment. In addition, we elucidate the sources of disagreements while updating the misalignment estimates by exploiting the latest set of data.

Research Area(s)

  • Absolute purchasing power parity, China, Currency misalignment, Exchange rates, Real income

Citation Format(s)

A note on the debate over Renminbi undervaluation. / Cheung, Yin-Wong; Chinn, Menzie D.; Fujii, Eiji.

China and Asia in the Global Economy. World Scientific Publishing Co., 2011. p. 155-187.

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