Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212657 
Year of Publication: 
2009
Series/Report no.: 
BOFIT Discussion Papers No. 13/2009
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
We collect data from 29 separate papers estimating the equilibrium level and possible undervaluation of the Chinese currency, the renminbi. These papers yield a total of 97 individual observations on misalignment, which we analyse with the help of meta-analysis. We find that the vast majority of observations point to renminbi undervaluation in recent years and that the undervaluation is more pronounced when the US dollar exchange rate is used instead of the real effective exchange rate. We find several characteristics of papers and authors that clearly seem to influence the reported misalignments. For example, when the author is affiliated with an investment bank, the reported misalignment is smaller. Using time-series techniques also results in lower estimates of undervaluation. On the other hand, refereed journals seemingly are inclined to publish papers that report larger misalignments. Results caution against trusting too much in any one study concerning renminbi underva! luation.
Subjects: 
equilibrium exchange rate
exchange rate misalignment
meta-analysis
China
JEL: 
C82
F31
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-981-2
Document Type: 
Working Paper

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