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dc.contributor.authorSell, Friedrich L.en_US
dc.date.accessioned2009-01-29T15:35:12Z-
dc.date.available2009-01-29T15:35:12Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/23031-
dc.description.abstractIn this paper, we discuss the new aspects of exchange rate policy which can be observed in the emerging market economies and their most likely implications for allocation, distribution and stabilization goals. A special emphasis is put on the Chinese case, where large interventions in the foreign exchange market point at a significant undervaluation of the Renminbi. With many alternatives at choice, Chinese authorities still prefer to peg their currency, by and large, to the US-Dollar. On July 21, 2005 a moderate revaluation and the introduction of a basket peg was announced, but a basket peg strategy is not yet visible in empirical figures. On the background of Germany's experiences of 1969, almost on the eve of the Bretton Woods' system collapse, we model a speculative attack on an undervalued currency in the vein of the Flood-Garber seminal paper from 1984. The contents of the model are reflected against today's reality in China, but also against Germany's experiences in the past century. We come to the conclusion, quite in line with Germany's experience of 1969, that the monetary authorities in China should anticipate such an attack and quickly proceed to a revaluation of the Renminbi. We then propose a sequence of reforms/policies which should be implemented in the aftermath.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesDiskussionsbeiträge / Institut für Volkswirtschaftslehre, Universität der Bundeswehr München 2006,2en_US
dc.subject.jelO23en_US
dc.subject.jelE58en_US
dc.subject.jelF31en_US
dc.subject.ddc330en_US
dc.subject.keywordAbsorption Emerging markets economiesen_US
dc.subject.keywordexchange rate policyen_US
dc.subject.keywordspeculative attacken_US
dc.subject.keywordfirst generation modelsen_US
dc.titleThe New Exchange Rate Policy in the Emerging Market Economies: with Special Emphasis on Chinaen_US
dc.typeWorking Paperen_US
dc.identifier.ppn521367476en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:ubwwpe:20062-
Appears in Collections:Diskussionsbeiträge, Inst. f. VWL, UniBw München

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