Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/30020 
Year of Publication: 
2010
Series/Report no.: 
Economics Discussion Papers No. 2010-8
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
This study provides quarterly time-series estimates of the misalignment in the REER of the Renminbi (RMB). The estimation is based on a commonly used economic approach, but with a wider and more up-to-date coverage of data and a more extensive use of econometric modelling techniques. Our estimates corroborate and explain most of the previous estimates. More importantly, our estimates demonstrate that there is no significant undervaluation in the REER of the RMB though downward misalignment exists in the trilateral rates between the RMB, US$ and euro. The finding refutes the claim that RMB appreciation is the primary and necessary solution to the current global trade imbalance.
Subjects: 
Real exchange rate misalignment
JEL: 
F31
F41
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Working Paper

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