Currency appreciation, rising financial asset values, and output fluctuations in China
Applying a general equilibrium model and the Newey-West method, this article finds that real output in China has a positive relationship with real M2, the government deficit/GDP ratio, and the real stock price and a negative relationship with real appreciation. The expected inflation rate is insignificant. It is estimated that when the real effective exchange rate rises 1%, real GDP in China is expected to decrease by 0.938% and that a 1% increase in real stock prices would raise output by 0.126%.
Year of publication: |
2009
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Authors: | Hsing, Yu ; Hsieh, Wen-Jen |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 16.2009, 8, p. 853-857
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Publisher: |
Taylor & Francis Journals |
Saved in:
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