Cheung, Yin-Wong; Chinn, Menzie David; Fujii, Eiji - 2022
We examine whether the Chinese exchange rate is misaligned and how Chinese trade flows respond to the exchange rate and … is on the order of 10 percent. Second, we find that Chinese multilateral trade flows respond to relative prices - as … represented by a trade weighted exchange rate - but the relationship is not always precisely estimated. In addition, the direction …