The Equilibrium Exchange Rate of the Chinese Renminbi

Chou, Wayne; Shih, Yi-Pei

doi:10.1006/jcec.1997.1498

Cited by 54 publications

(37 citation statements)

References 9 publications

(12 reference statements)

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“…The current study differs from Chou and Shih (1998) in that it follows the BEER approach, which is based on the standard theory of the equilibrium real exchange rate. The period of examination covered by this study is also longer, as it spans the mid 1950's to the recent past.…”

Section: Approaches To Measuring Real Exchange Rate Misalignmentmentioning

confidence: 97%

“…Recently Chou and Shih (1998) have estimated the equilibrium exchange rate of the Chinese currency using the PPP approach and the shadow price of foreign exchange (SPFE) model. The current study differs from Chou and Shih (1998) in that it follows the BEER approach, which is based on the standard theory of the equilibrium real exchange rate.…”

Section: Approaches To Measuring Real Exchange Rate Misalignmentmentioning

confidence: 99%

See 1 more Smart Citation

Real Exchange Rate Misalignment in China: An Empirical Investigation

Zhang

2001

Journal of Comparative Economics

101

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Section: Approaches To Measuring Real Exchange Rate Misalignmentmentioning

confidence: 97%

Section: Approaches To Measuring Real Exchange Rate Misalignmentmentioning

confidence: 99%

Real Exchange Rate Misalignment in China: An Empirical Investigation

Zhang

2001

Journal of Comparative Economics

101

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“…This is an indication that the RMB may have been undervalued by monetary manipulations. Indeed, several recent studies have found evidence of undervaluation for most of the sample period, though these studies differ in defining and calculating the equilibrium real exchange rate (see, among others, Bu and Tyers, 2001;Chou and Shih, 1998;Zhang, 2001b). Nonetheless, undervaluation could not have played a significant part in bringing about the rapid expansion of the trade balance.…”

Section: Sources Of Fluctuations In Trade Balance and Real Exchange Ratementioning

confidence: 99%

What accounts for China's trade balance dynamics?

Zhang

Wan

2007

Journal of Policy Modeling

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This paper proposes a structural VAR model which extends the frameworks of Hoffmaister and Roldós (2001) and Prasad (1999). The model is then used to analyse the sources of China's trade balance fluctuations in the period of 1985-2000. Efforts are made to distinguish the forces which underlie the long-run trend in trade balance from those with transitory impacts. The effects of four types of shock are examined-the foreign supply shock, the domestic supply shock, the relative demand shock, and the nominal shock. Among other findings, two emerge as important. First, the movements in China's trade are largely the result of real shocks. Second, the Renminbi is undervalued, yet changes in the exchange rate bear little on the trade balance. Therefore, monetary measures would not suffice to redress China's trade 'imbalance'.

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“…Similarly, there are a lot of literatures about the study of purchasing power parity of RMB, which mainly use the above methods to study. In their conclusions, some support for purchasing power parity, such as Chou and Shih (1998) [6], Liu Jinquan (2006) [7], etc. (2006), and others don't not supported the purchasing power parity, such as Yi Gang (1997) [8], Zhang Xiaopu (2000) [9], etc.…”

Section: The Results Of Former Testmentioning

confidence: 99%

A Study on Chinese Real Exchange Rate

Pan¹

2018

Proceedings of the 2018 5th International Conference on Management Science and Management Innovation (MSMI 2018)

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Abstract. Purchasing power parity theory is often used as an important basis for exchange rate policy, and also the most widely used in the theory of exchange rate decision. Since July 21, 2005, the exchange rate system of China is relatively stable, and also the economic development is the same. Therefore, this paper took the nominal exchange rate of RMB against the Dollar and the consumer's price index of China and US in the past 10 years as a sample, used unit root test and co integration test for purchasing power parity checking. The results show that the purchasing power parity is not applicable to the real exchange rate of RMB.

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The Equilibrium Exchange Rate of the Chinese Renminbi

Cited by 54 publications

References 9 publications

Real Exchange Rate Misalignment in China: An Empirical Investigation

Real Exchange Rate Misalignment in China: An Empirical Investigation

What accounts for China's trade balance dynamics?

A Study on Chinese Real Exchange Rate

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