An Empirical Analysis of China's Long Run Equilibrium Exchange Rate
Author | : Bert Ward |
Publisher | : LAP Lambert Academic Publishing |
Total Pages | : 76 |
Release | : 2013 |
ISBN-10 | : 3659495522 |
ISBN-13 | : 9783659495526 |
Rating | : 4/5 (22 Downloads) |
Download or read book An Empirical Analysis of China's Long Run Equilibrium Exchange Rate written by Bert Ward and published by LAP Lambert Academic Publishing. This book was released on 2013 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study represents an empirical analysis of the extent to which China's currency deviates from its long run equilibrium path. The research is based on a cointegrated econometric model of the exchange rate between the Chinese RMB and the American dollar. Using the econometric model, a series of long run equilibrium values for the RMB/USA rate is computed, which is then compared to its historical values in order to derive a time path for extent of disequilibrium.