Funke, Michael; Rahn, Jörg - In: The World Economy 28 (2005) 4, pp. 465-489
Given that the value of China's currency has been a hot topic recently, this paper explores the equilibrium levels of China's real and nominal exchange rates. Employing a Johansen cointegration framework, we focus on the behavioural equilibrium exchange rate (BEER) and permanent equilibrium...