Showing 1 - 10 of 20
(GDP) and trade volume, has intensified debate on the potential international role of its currency - the renminbi (RMB …
Persistent link: https://www.econbiz.de/10010397329
Current account deficits in the United States (US) and current account surpluses in East Asia are an enduring part of the global economic landscape. They are supported by low saving in the US and by reserve accumulation in Asia. This paper argues that this strategy is causing macroeconomic...
Persistent link: https://www.econbiz.de/10010279816
This paper analyzes the role of processing trade in the People's Republic of China (PRC)'s bilateral trade balances and the impact of the yuan's appreciation on processing trade. The analysis is based on panel data covering the PRC' 51 trading partners from 1993 - 2008. The empirical analysis...
Persistent link: https://www.econbiz.de/10010286106
Enormous trade surpluses are problematic for the People's Republic of China (PRC) and the rest of the world. They primarily stem from processing trade. This paper investigates how exchange rate changes would affect the PRC's imports for processing and processed exports. The results indicate that...
Persistent link: https://www.econbiz.de/10010286138
Notwithstanding incumbency advantages and network effects enjoyed by the United States (US) dollar, considerations about the stability of its value have led Asian countries to fear they are holding their foreign exchange reserves in a depreciating currency. At the same time, it pays for the...
Persistent link: https://www.econbiz.de/10010286157
In this paper, we use the iPhone as a case to show that even high-tech products invented by United States (US) companies will not increase US exports, but on the contrary exacerbate the US trade deficit. The iPhone contributed US$1.9 billion to the US trade deficit with the People's Republic of...
Persistent link: https://www.econbiz.de/10010286165
This paper examines how an appreciation of the currency of the People's Republic of China (PRC) - renminbi - affects …/93-2008/09. It constructs two exchange rates for renminbi: one is a bilateral real exchange rate and the other is a real effective … exchange rate against East Asian component suppliers. It is found that appreciation of the renminbi would somewhat offset a …
Persistent link: https://www.econbiz.de/10010286180
This paper estimated the pass-through effects of yuan's exchange rates on prices of the US and Japanese imports from the People's Republic of China (PRC). Empirical results show that, a 1% nominal appreciation of the yuan would result in a 0.23% increase in prices of the US imports in the short...
Persistent link: https://www.econbiz.de/10010286187
For many observers, internationalization is the yuan's manifest destiny - an irresistible by-product of the remarkable economic success of the People's Republic of China (PRC). But is such confidence warranted? Recent history has seen the emergence of other currencies that were also expected, at...
Persistent link: https://www.econbiz.de/10010397217
currency, the renminbi. Historical experience suggests that an active offshore market is essential for a global currency …. Indeed, anecdotal evidence affirms the role of offshore markets in pushing the renminbi currency to the world. One should not … global use of the currency, the overseas acceptance of the renminbi is ultimately determined by both internal and external …
Persistent link: https://www.econbiz.de/10010397261