Purpose – This paper aims to conceptually argue that China's trade surplus with the USA is not good. Design/methodology/approach – Net exporters (like China) give up current consumption in order to gain claims against future production. This paper argues that the reasons why China is trading...

By January 2009, China held almost US$2tn in foreign reserves. The present paper estimates the marginal effect of China changing its holdings of foreign reserves on the value of the US dollar in Europe and Asia. Because using traditional techniques to find this estimate would be inappropriate...

This paper uses the fourth generation of Bi-Directional Reiterative Truncated Projected Least Squares (BD-RTPLS4) to estimate the dollar change in exports due to the accumulation of an additional dollar of foreign reserves, ∂(exports)/∂(foreign reserves), for Australia, Bangladesh, China,...

This paper uses Bi-Directional Reiterative Truncated Projected Least Squares (BD-RTPLS) to estimate annual ∂GPP/∂G and %∂GPP/%∂G multipliers for China’s 31 provinces between 1996 and 2006 (GPP = Gross Provincial Product and G = government spending in the province). In order to account...

In the wake of the 2008 financial crisis, many countries are hoping that massive increases in their money supplies will revive their economies. Evaluating the effectiveness of this strategy using traditional statistical methods would require the construction of an extremely complex economic...