This paper discusses the profound difficulties of maintaining fixed exchange rates in a world of expanding global …

world data demand a statistical technique that allows parameters and regimes to shift frequently. Accordingly we here take …

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 …