Conference Paper
Why the renminbi might be overvalued (but probably isn’t)
Abstract: The Renminbi (RMB) is evaluated using relative PPP, absolute PPP, and Balassa-Samuelson criteria. We find that some approaches imply substantial undervaluation of the RMB, while others imply little or none. Yet a few others indicate slight overvaluation. However, even when the estimated degrees of undervaluation are large, the gap between predicted and actual values is not always statistically significant. We also find that including measures of institutions, such as the absence of corruption, results in smaller estimates of RMB undervaluation.
Status: Published in External imbalances and adjustment in the Pacific Basin : a conference (2005: September 22-23)
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Bibliographic Information
Provider: Federal Reserve Bank of San Francisco
Part of Series: Proceedings
Publication Date: 2005