publication . Preprint . 2004

China; Sources of Real Exchange Rate Fluctuations

Tao Wang;
Open Access
  • Published: 01 Feb 2004
Abstract
This paper reviews the evolution of China's real effective exchange rate between 1980 and 2002, and uses a structural vector autoregression model to study the relative importance of different types of macroeconomic shocks for fluctuations in the real exchange rate. The structural decomposition shows that relative real demand and supply shocks account for most of the variations in real exchange rate changes during the estimation period. The paper also finds that supply shocks are as important as nominal shocks in accounting for real exchange rate fluctuations, in contrast with other studies that show that, in industrial countries, nominal shocks are more importan...
Subjects
free text keywords: Time-Series Models, Open Economy Macroeconomics, Economywide Country Studies: Asia including Middle East, [China;Foreign exchange;real exchange rate, structural VAR, exchange rate, effective exchange rate, real effective exchange rate, exchange rate fluctuations, Multiple or Simultaneous Equation Models]
Powered by OpenAIRE Research Graph
Any information missing or wrong?Report an Issue