Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/55159
Authors: 
Qin, Duo
He, Xinhua
Liu, Yimeng
Year of Publication: 
2010
Series/Report no.: 
Working Paper // School of Economics and Finance, Queen Mary, University of London 667
Abstract: 
This is a comparative study on the historical experience of real effective exchange rate (REER) misalignment of Japanese yen, Deutsche mark, Singapore dollar and Taiwan dollar, with regard to the recent dispute over the Renminbi (RMB) valuation. Panel-based misalignment estimates of the four economies show that net foreign asset build-up does not necessarily result in currency misalignment, and the recent misalignment of RMB is not unprecedented in terms of magnitude, duration or currency coverage, whereas volatility in REER misalignment is likely to propagate to inflation of the home economy concerned. The assertion of 'RMB rate manipulation' thus lacks empirical support.
Subjects: 
REER misalignment
RMB
Yen
D-Mark
Singapore dollar
Taiwan dollar
JEL: 
F31
F41
O57
C23
Document Type: 
Working Paper

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