Bacchetta, Philippe; Benhima, Kenza; Kalantzis, Yannick - Hong Kong Institute for Monetary Research (HKIMR), … - 2014
In this paper, we consider an alternative perspective to China's exchange rate policy. We study a semi-open economy where the private sector has no access to international capital markets but the central bank has full access. Moreover, we assume limited financial development generating a large...