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Since 2004, China has been backed into a situation where the renminbi is expected to go ever higher against the dollar ….S. dollar, the resulting monetary explosion in China contributes to the worldwide increase in primary commodity priceswith … excess liquidity reminiscent of the global inflation generated by the weak dollar in the 1970s. -- Inflation ; exchange rates …
Persistent link: https://www.econbiz.de/10003749649
Since 2004, China has been backed into a situation where the renminbi is expected to go ever higher against the dollar ….S. dollar, the resulting monetary explosion in China contributes to the worldwide increase in primary commodity prices - with … excess liquidity reminiscent of the global inflation generated by the weak dollar in the 1970s …
Persistent link: https://www.econbiz.de/10013316479
Persistent link: https://www.econbiz.de/10003972186
and regain autonomy in its monetary policy, China needs to move toward a free floating exchange rate system by refraining …
Persistent link: https://www.econbiz.de/10014055361
China's trade surplus is often heavily criticized in political and economic debates, accompanied by claims for a … revaluation of the Chinese currency, the Renminbi (RMB). While the main arguments exchanged in the current discourse appear to … investigating bilateral trade balances between China and 11 of her main trading partners. Being the first to use structural …
Persistent link: https://www.econbiz.de/10012899706
This paper finds that limited exchange rate flexibility in the form of "fear of appreciation" significantly slows adjustment of current account imbalances, providing novel support for Friedman's conjecture regarding exchange-rate flexibility. We present a new stylized fact: floaters have faster...
Persistent link: https://www.econbiz.de/10013334498
Alarmed by the persistent and large US trade deficit vis-à-vis China and the rapidly swelling Chinese foreign exchange … reserves, influential US policymakers are urging the Chinese authorities to allow a substantial appreciation of the Renminbi … of the present international economy and of China's financial system. Indeed, the record growth of China's exports to the …
Persistent link: https://www.econbiz.de/10008840269
Global current account imbalances were a major subject of concern in the years before the recent financial crisis. It is shown that the expected (negative) equilibrium relationship between net foreign assets and the trade balance that had held in the previous twenty years appeared to break down...
Persistent link: https://www.econbiz.de/10010382090
This study analyzes the dynamics between real effective exchange rates and current account patterns from a novel perspective. We start by dissecting long-run and time-varying short-run dynamics between both variables. Following this, we extend our framework by including interest rates into our...
Persistent link: https://www.econbiz.de/10010483886
In this paper, we argue that inflation targeting could be the future of Tunisia's monetary policy. Monetary targeting … reserves, current account deficit, and inflation differentials with main trading partners. The Central Bank of Tunisia has … already made important progress toward inflation targeting. The paper evidences the existence of increasingly effective …
Persistent link: https://www.econbiz.de/10013315123