This paper aims at assessing the relationship between the exchange value of the Chinese Renminbi (RMG) and China's trade balance by means of some recent econometric techniques designed to evaluate the existence and the direction of causality. We find strong evidence suggesting that changes in...

This paper aims at assessing the relationship between the exchange value of the Chinese Renminbi (RMG) and China's trade balance by means of some recent econometric techniques designed to evaluate the existence and the direction of causality. We find strong evidence suggesting that changes in...

DEMANDING DEVALUATION -- Contents -- List of Figures -- List of Tables -- Acknowledgments -- List of Abbreviations -- Introduction -- 1. A Conditional Preference Theory of Undervalued Exchange Rates -- 2. Cross-Country Patterns in Exchange Rate Policy and Preferences -- 3. Why China Undervalues...