Download or read book The Dynamics of Real Interest Rates Real Exchange Rates and the Balance of Payments in China written by Mr.Zhongxia Jin and published by International Monetary Fund. This book was released on 2003-04-01 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on China's experience between 1980 and 2002, a cointegrated vector autoregression model was established to explore the relationships among real interest rates, real exchange rates and balance of payments in China. Taking into account institutional changes, the empirical study shows that significant and usually non-monotonic interactions exist between these three variables. The paper discusses theoretical and policy implications of the empirical result.
Download or read book The Dynamics of Real Interest Rates Real Exchange and the Balance of Payments in China written by Zhognxia Jin and published by . This book was released on 2003 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Real Interest Rates Real Exchange Rates and Net Foreign Assets in the Adjustment Process written by Mr.Thomas Helbling and published by International Monetary Fund. This book was released on 1995-12-01 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the recent behavior of real exchange rates, the trade balance and the net foreign asset position of the United States in an intertemporal optimizing model of the world economy that incorporates heterogeneity across countries and imperfect international capital and good markets. While the model successfully tracks the dynamics of trade balances and net foreign assets it generates too much consumption smoothing and excessively volatile relative prices. Resolving these inadequacies simultaneously is difficult as the elasticity of substitution between tradables and nontradables affects in opposite ways the degree of consumption smoothing and the volatility of relative prices.
Download or read book The Future of China s Exchange Rate Policy written by Morris Goldstein and published by Peterson Institute. This book was released on 2009 with total page 125 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Debating China s Exchange Rate Policy written by Morris Goldstein and published by Peterson Institute. This book was released on 2008 with total page 401 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Exchange Rate Regime and the Dynamics of Exchange Rates Interest Rates and Balance of Payments in China written by Li Li Jiang and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Real Exchange Rate and Employment in China written by Ms.Ruo Chen and published by International Monetary Fund. This book was released on 2011-06-01 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the impact of real exchange rate fluctuations on sectoral and regional employment in China from 1980 to 2008. In contrast to theoretical predictions, employment in both the tradable and non-tradable sectors contracts following a real appreciation. Our results are robust across different sub-samples, levels of sectoral disaggregation, and are more pronounced for regions with higher export exposure. We attribute our findings to the importance of services as intermediate input in exportable production. We test this channel of exchange rate transmission using regional input-output tables linked with employment data at the region-sector level. The results of this paper have important implications for China's labor market adjustment should the Chinese RMB strengthen in the future. To mitigate the costs of short-run labor market adjustment, appropriate demand management and structural reforms in the non-traded sectors should play an important role.
Download or read book Current Account Rebalancing and Real Exchange Rate Adjustment Between the U S and Emerging Asia written by Ms.Isabelle Mejean and published by International Monetary Fund. This book was released on 2011-03-01 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: A reduction in the U.S. current account deficit vis-à-vis emerging Asia involves a shift in demand from U.S. to emerging Asia tradable goods and a change in international relative prices. This paper quantifies the required adjustment in the terms of trade and real exchange rates in a three-country open economy model of the U.S., China, and other emerging Asia. We compare scenarios where both Chinese and other emerging Asian export prices change by the same proportion to the case where export prices remain constant in one country and increase in the other. Our results are robust to different assumptions about elasticities of substitution and to introducing a high degree of vertical fragmentation in production in the model.
Download or read book China s Evolving Exchange Rate Regime written by Mr.Sonali Das and published by International Monetary Fund. This book was released on 2019-03-07 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: China’s exchange rate regime has undergone gradual reform since the move away from a fixed exchange rate in 2005. The renminbi has become more flexible over time but is still carefully managed, and depth and liquidity in the onshore FX market is relatively low compared to other countries with de jure floating currencies. Allowing a greater role for market forces within the existing regime, and greater two-way flexibility of the exchange rate, are important steps to build on the progress already made. This should be complemented by further steps to develop the FX market, improve FX risk management, and modernize the monetary policy framework.
Download or read book The Dynamics of Real Interest Rates Real Exchange Rates and the Balance of Payments in China 1980 2002 written by Zhongxia Jin and published by . This book was released on 2003 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book How Robust are Estimates of Equilibrium Real Exchange Rates written by Steven Vincent Dunaway and published by . This book was released on 2006 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Increased attention is being paid to assessments of the actual values of countries' real exchange rates relative to their "equilibrium" values as suggested by "fundamental" determining factors. This paper assesses the robustness of alternative approaches and models commonly used to derive equilibrium real exchange rate estimates. Using China's currency to illustrate this analysis, the variance in estimates raises serious questions regarding how robust the results are. The basic conclusion from the tests used here is that, at least for China, small changes in model specifications, explanatory variable definitions, and time periods used in estimation can lead to very substantial differences in equilibrium real exchange rate estimates. Thus, such estimates should be treated with great caution.
Download or read book Real Exchange Rate Targeting Under Imperfect Asset Substitutability written by Mr.José Saúl Lizondo and published by International Monetary Fund. This book was released on 1993-04-01 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a model of an economy that uses nominal exchange rate policy to keep the real exchange rate constant at a certain target level, under imperfect asset substitutability. The paper discusses the determinants of inflation under such a policy, and examines the consequences of exogenous and policy-induced shocks on inflation, the external accounts, and the fiscal accounts. The shocks considered include changes in the real exchange rate target, changes in fiscal policy, changes in foreign interest rates, and open market sales of public sector domestic bonds.
Download or read book China s Growing Role in World Trade written by Robert C. Feenstra and published by University of Chicago Press. This book was released on 2010-03-10 with total page 603 pages. Available in PDF, EPUB and Kindle. Book excerpt: In less than three decades, China has grown from playing a negligible role in international trade to being one of the world's largest exporters, a substantial importer of raw materials, intermediate outputs, and other goods, and both a recipient and source of foreign investment. Not surprisingly, China's economic dynamism has generated considerable attention and concern in the United States and beyond. While some analysts have warned of the potential pitfalls of China's rise—the loss of jobs, for example—others have highlighted the benefits of new market and investment opportunities for US firms. Bringing together an expert group of contributors, China's Growing Role in World Trade undertakes an empirical investigation of the effects of China's new status. The essays collected here provide detailed analyses of the microstructure of trade, the macroeconomic implications, sector-level issues, and foreign direct investment. This volume's careful examination of micro data in light of established economic theories clarifies a number of misconceptions, disproves some conventional wisdom, and documents data patterns that enhance our understanding of China's trade and what it may mean to the rest of the world.
Download or read book Estimating China s Equilibrium Real Exchange Rate written by Steven Vincent Dunaway and published by INTERNATIONAL MONETARY FUND. This book was released on 2005-10-01 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: The number of studies attempting to estimate the "equilibrium" real value of China's currency has proliferated in recent years as the country's presence in world markets has grown. These studies have sought to establish whether or not a significant part of China's competitive prowess can be attributed to the foreign exchange value of the renminbi. Unfortunately, no consensus has emerged because the studies yield a very wide range of estimates. The paper looks at a sample of these studies, with estimates of undervaluation ranging from zero to nearly 50 percent. It attributes the wide variation in these estimates to the influence of such factors as the different methodologies used, explanatory variables included, subjective judgments of the various researchers in deriving their results, and instability in underlying economic relationships, especially in a rapidly developing economy like China.
Download or read book The Renminbi Exchange Rate Revaluation written by Toshiki Kanamori and published by . This book was released on 2006 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Nonlinear Model of Real Exchange Rate Dynamics with an Application to the Case of Taiwan written by Zhaonan Chen and published by . This book was released on 1994 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic Transitions in China and Japan written by Ying Zhang and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: [Truncated] This dissertation aims to offer insights into the path of China's and Japan's recent economic transitions and the implications for their real exchange rates. The literature on the determination of real exchange rates is reviewed in the first substantive chapter, confirming that, in the short run, it is dominated by cross-border financial capital flows and their associated influence on domestic aggregate demand. Economic fundamentals play key roles in both the short and long runs, though they are most influential in the long run. Indeed, shocks to technology, demographic structure, consumer preferences, the fiscal balance, the money supply, and to distortions such as trade barriers and imperfect competition can all affect real exchange rates. An analytical model describing short-run determinants is developed to codify these effects. The second substantive chapter examines China's exchange rate puzzle. International pressure to revalue China's currency stems in part from the expectation that rapid economic growth should be associated with an underlying real exchange rate appreciation. This hinges on the Balassa-Samuelson hypothesis. A dynamic general equilibrium model is adopted to simulate the economy and show that, during the period of 1994-2003, trade reforms and a rising national saving rate were offsetting forces in the presence of elastic labour supply. This is followed by an examination of the possible determinants of the striking transition to real appreciation thereafter, noting mounting evidence that an improved rural terms of trade tightened China's labour market, slowed rural to urban migration and raised domestic unit costs. The third substantive chapter revisits Japan's economic stagnation and is focussed on the keys to its impending recovery. The many claimed sources of Japan's stagnation are reviewed, with particular attention to the extraordinary gyrations in Japan's real exchange rate between the late 1980s and the mid-1990s. These played an important role in the economic performance of the time. A smooth real depreciation is shown to be part of the recipe for recovery, the potential sources of which are analysed using a multi-region global dynamic general equilibrium model. Both demand and supply side determinants of the real exchange rate are considered and it is suggested that a further sudden and substantial real appreciation should be avoided. Moreover, it is shown that improvements in Japan's services sector productivity would bring about the needed smooth real depreciation and that this would play a key role in promoting the recovery.
