China exchange rates5/7/2023 ![]() See, for example, Shi (2006), Cline (2010) and Cline and Williamson (2011). , as being the responsible factor for this increase 4 4 See, for example, Cline and Williamson (2011). In other words, the exchange rate misalignment measures how much the exchange rate deviates from the long-term equilibrium rate. In general, the exchange rate misalignment is defined as the difference between the observed Real Exchange Rate (RER) and estimated RER. In this sense, there are many authors who point out the low value (undervaluation) of the Yuan/Renminbi (RMB) exchange rate, relative to its equilibrium value 3 3Ī situation usually known in economic literature as exchange rate misalignment. This growth of the Chinese economy is mainly the result of an increase in exports. Likewise, the extraordinary increase in the competitiveness of Chinese enterprises and the high revenues from foreign investment have given way to numerous debates all over the world, in particular on the issue of the “opportunity or threat” raised by the economic upswing of China 2 2 See, for example, Martins (2005), Rodrik (2006) and Assche et al. ^ CNY PPP is estimated according to the International Monetary Fund's World Economic Outlook database.In recent years, the Chinese economy has been characterized by a strong and rapid growth, a fact that has caught the attention of many authors 1 1.^ IMF annual average nominal exchange rates are from International Monetary Fund/ WEO DATA.^ World Bank annual average nominal exchange rates are from wORLD bANK/ WDI DATA. ![]()
0 Comments
Leave a Reply. |