Much more than comparative advantage and free markets have been at play in shaping China's export success. Government … have developed in their absence. As a result, China has ended up with an export basket that is significantly more … China's rapid growth. What matters for China's future growth is not the volume of exports, but whether China will continue …

China and America's other trading partners manipulate their exchange rates, and (b) the nature of the Chinese exchange rate … bilateral deficit, though other variables also turn out to be quite important. On the issue of China's de facto exchange rate …

for China. (1) China's economy is on the overheating side of internal balance, and appreciation would help easy … inflationary pressure. (2) Although foreign exchange reserves are a useful shield against currency crises, by now China's current … economy like China can achieve adjustment in the real exchange rate via flexibility in the nominal exchange rate more easily …

The paper updates the answer to the question: what precisely is the exchange rate regime that China has put into place …