The debate on renminbi (RMB) revaluation has not subsided, despite the policy change announced by the Chinese authorities in July 2005. In this chapter, we show that the evidence of RMB undervaluation may not be as strong as it appears. Specifically, depending on the method used, the evidence...

We observe that daily highs and lows of stock prices do not diverge over time and, hence, adopt the cointegration concept and the related vector error correction model (VECM) to model the daily high, the daily low, and the associated daily range data. The in-sample results attest the importance...

Intro -- CESifo Seminar Series -- Contents -- Contributors -- Series Foreword -- Preface -- 1 Introduction -- I China's Exchange Rate Policy -- 2 United States, China, and the Rebalancing Debate: Misalignment, Elasticities, and the Saving-Investment Balance -- 3 The Role of the Chinese Dollar...