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China’s Current Account and Exchange Rate

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Author(s)
Cheung, Yin-Wong; Chinn, Menzie D.; Fujii, Eiji
Date
2007
Series
La Follette School Working Papers
Abstract
The authors examine whether the Chinese exchange rate is misaligned and how Chinese trade flows respond to the exchange rate and to economic activity. They find, first, that the currency is substantially below the value their cross-country estimates predicted. They also find that Chinese multilateral trade flows respond to relative prices.
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http://digital.library.wisc.edu/1793/36234 
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