Under the world dollar standard, a discrete appreciation by a dollar creditor country of the United States, such as China or Japan, has no predictable effect on its trade surplus. Currency appreciation by the creditor country will slow its economic growth and eventually cause deflation but...

China keeps its exchange rate tightly fixed to the dollar. Its productivity growth and trade surplus have been high, and it continues to accumulate large dollar reserves. Many observers take this as evidence that the renminbi is undervalued and should be appreciated to reduce the Chinese trade...

China has been running a large trade surplus with the rest of the world, particularly with the USA and EU. This has caused considerable diplomatic tensions and tremendous pressure on the Chinese currency. Existing analytical studies, however, mostly focus on real exchange rate and income as...

A ceasefire has been called in the trade war between the United States and China, but there is lingering uncertainty that will stifle aggregate spending until a "peace treaty" is signed. China is thus currently undertaking a precarious policy trifecta balancing act - trying to maintain steady...

The US dollar has been volatile and falling again and again in recent decades as well as recent years, and for many observers, it is going to be broken sooner or later. The central importance of the dollar is due to the fact that it is not just a currency for the US. Over half of all dollar...

Die große wirtschaftliche Abhängigkeit von China ist spätestens nach den militärischen Drohgebärden Pekings gegenüber Taiwan als gravierendes Problem erkannt und soll möglichst bald reduziert werden. Das Gegenteil fand jedoch im ersten Halbjahr 2022 statt. Die deutschen...

China's exchange-rate policy has been under attack in the last years, especially in the United States. Now the critique of Beijing's policy is coming from Europe as well, and Chinese authorities are accused of boosting its own export, at others expense, by keeping its currency below its real...

This paper proposes a structural VAR model which extends the frameworks of Hoffmaister and Roldós (2001) and Prasad (1999). The model is then used to analyse the sources of China’s trade balance fluctuations in the period of 1985–2000. Efforts are made to distinguish the forces which...

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...