This paper attempts to assess the compatibility of China with its present dollar-based exchange rate policies. Assessment is made in terms of the real convergence criteria suggested by the optimum currency areas (OCA) theory and the nominal convergence criteria specified by the Maastricht...

This paper deals with two related issues: the sustainability of China’s exchange rate regime and the opening up of its capital account. The exchange rate discussion deliberately passes over the issue of the “equilibrium” value of the renminbi and its alleged undervaluation – typically at...

This paper analyzes China's economic performance in the last 25 years and discusses its prospect for growth in the future. China has enjoyed high annual GDP growth rates of about ten percent in the last 25 years. Exports and investment were the two driving forces of the growth process. FDI plays...

Global production sharing - the breakup of a production process into vertically separated stages that are carried out in different countries - has become one of the defining characteristics of world trade over the past few decades. Any analysis of trade patterns or its determinants that ignores...

China's currency policy has been criticized for its apparent pursuit of mercantile advantage by artificially stimulating exports, which potentially have adverse effects on other economies. While China's currency policy may have positive output effects, there may be additional profits or losses....

This paper investigates whether there is an S-Curve in Colombia using bilateral and disaggregated quarterly data for the period 1991-2014. More precisely, the short-run effects of a depreciation on the TB are analysed in 27 industries covered by the PAG Free Trade Agreement. The S-Curve found in...

What is the relationship between real exchange rate misalignments and economic growth? And what effect, if any, did undervaluations or overvaluations of the lira/euro have on Italy's growth? We address these questions by presenting, first, three main facts: (i) there is a positive relationship...

Economy can be pretentious by the progression of devaluation or depreciation of local currency either positively or negatively. The improvement in trade balance is considered as one of the significant and beneficial impacts occurring on account of devaluation by means of an increase in the...

This paper deals with two related issues: the sustainability of China's exchange rate regime and the opening up of its capital account. The exchange rate discussion deliberately passes over the issue of the quot;equilibriumquot; value of the renminbi and its alleged undervaluation - typically at...

Determinants of trade flows have always attracted researchers. In this paper, we model monthly trade flows in India over January 2000 - December 2007 in a bid to gauge their responsiveness to exchange rate movements. Capital account and overall BOP surplus have led the Indian Rupee (INR) to...