Tiandong, LI; Shaoqiang, XUE; Qi, ZHU - In: Frontiers of Economics in China 1 (2006) 2, pp. 207-219
In this paper, we develop the Renminbi s dynamic model to analyze the relationship between the flow directions of foreign direct investment (FDI) and the exchange rate s expectations on the basis of distinguishing the real interest rate from the desired interest rate. We find that the exchange...