Chinas trade surplus is entirely in processing trade. Processed exports are final goods produced using parts and … added comes from China, while for PAA exports, most of the value-added comes from supply chain countries. Dynamic ordinary … exports comes from East Asian countries, exchange rates in supply chain countries should affect Chinas processed exports and …

rates. We set up a two-country two-sector model for the US-China with two asymmetries. First, we assume that the size of … China initially is one third of the US but its size becomes half of the US in the next ten years consistent with the fast … growth expectations in China. Secondly, we assume that China initially runs a net export surplus against the US. Then we …

countries and analyze the impact of a supply shock in an emerging economy, the People's Republic of China (PRC), on inflation … trade specialization vis-à-vis the PRC and the PRC's USdollar- pegged regime. This outcome suggests that, even though Japan … rates in two developed economies, the United States (US) and Japan. We demonstrate that the assumed asymmetric trade …

's Republic of China (PRC). Our model also suggests that the share of the RMB in export invoicing should have been higher than the …'s exports will rise to above 25% in 2015 and above 30% in 2018, whether or not the PRC implements drastic financial …We investigate the determinants of currency choice for trade invoicing in a cross-country context while focusing on the …

China are not necessarily the intended outcome of any government policies or an undervalued home currency, but instead a … timely financial reform). A tractable growth model of precautionary saving is provided to quantitatively explain China …'s extraordinary path of trade surplus and foreign-reserve accumulation in recent decades. Ironically, the analysis suggests that …

We develop a two-country two-period model able to reproduce the key qualitative aspects of the US-China co … sufficiently loose, thus reducing the real value of the US liabilities held by China, this latter finds less tempting to stop … China change from the maximization of GDP growth to higher households' standards of living, a rebalancing process may be …

In recent years China has experienced two forms of extreme macroeconomic imbalance: an expenditure imbalance in the …; risk of capital loss on the foreign exchange holdings; and the threat of retaliation by China's trading partners. A …

's Republic of China (PRC). In particular, we investigate to what extent reforms pertaining to the financial sector, social … protection, and healthcare may contribute to a rebalancing of the PRC's persistent current account imbalances. Our forecasting …-funded healthcare are also found to contribute to a rebalancing of the PRC economy …

This working paper assesses the progress made in improving China's exchange rate policies over the past five years … (that is, since 2002). I first discuss four indicators of progress on China's external imbalance and its exchange rate … policies - namely, the change in (and level of) China's global current account position, movements in the real effective …

exports) to the American economy by the rest of the world. This trading situation had already emerged around 1980, and led to … funds theory, which is institutionally inadequate. More plausible analyses of the persistent trade imbalance can be derived … the United States, and dissection of the terms of trade due to W. Arthur Lewis and Luigi Pasinetti …