García-Herrero, Alicia; Koivu, Tuuli - BBVA Research, Grupo BBVA - 2009
This paper shows empirically that China s trade balance is sensitive to fluctuations in the renminbi real effective … exchange rate. However, the current size of the trade surplus is such that exchange rate policy, alone, will probably not be … able to address the imbalance. The reduction in the trade surplus is limited mainly because Chinese imports do not react as …