Jingtao Yi
Author information
School of Business, Renmin University of China, Beijing 100872, China
E-mail: jingtaoyee@hotmail.com
Motivated by the global debate on the possible revaluation of the Chinese currency, the RMB, in recent years, the objective of this paper is to measure the equilibrium value of the RMB exchange rate through the macroeconomic balance approach in order to produce an assessment of the RMB in terms of periods of misalignment. The empirical evidence indicates that although there turns out to be an increasing degree of the RMB undervaluation in these measures from 2003 to 2004, the RMB is not substantially undervalued in both measures of real effective exchange rates and nominal bilateral exchange rates against the US dollar over the full period 1994–2004.
equilibrium exchange rate , foreign exchange , Chinese Renminbi , macroeconomic balance , cointegration
Jingtao Yi. China’s Equilibrium Exchange Rate Dynamics 1994–2004: A Cointegration Analysis. Front Econ Chin, 2010, 5(3): 375‒392 https://doi.org/10.1007/s11459-010-0103-3
