publication . Research . 2005

What is the New Chinese Currency Regime?

Shah, Ajay; Zeileis, Achim; Patnaik, Ila;
Open Access English
  • Published: 01 Jan 2005
  • Publisher: Department of Statistics and Mathematics, WU Vienna University of Economics and Business
  • Country: Austria
The revaluation of the yuan in July 2005 was described by the Chinese central bank as a change in the currency regime, rather than merely a changed level of the exchange rate. The reform was said to involve a shift away from the fixed exchange rate, a gradual movement towards greater flexibility, and a peg to a basket of currencies. This paper closely examines the post-July Chinese currency regime utilising contemporary ideas in the econometrics of structural change. We find that the yuan has remained pegged to the US dollar, rather than to a basket, and has extremely limited currency flexibility. We find no evidence of structural change in the post-July period,...
free text keywords: exchange rates / currency regime / structural change / monitoring
39 references, page 1 of 3

Andrews DWK (1991). “Heteroskedasticity and Autocorrelation Consistent Covariance Matrix Estimation.” Econometrica, 59, 817-858.

Andrews DWK, Monahan JC (1992). “An Improved Heteroskedasticity and Autocorrelation Consistent Covariance Matrix Estimator.” Econometrica, 60(4), 953-966.

Benassy-Quere A, Coeure B (2003). “On the Identicfiation of de facto Currency Pegs.” Technical report, University of Paris; French Ministry of Economy and Finance.

Blustein P (2005). “'Watershed' Yuan Revaluation Has Made Few Waves.” Washington Post. URL AR2005092001682.html.

Calvo GA, Reinhart CM (2002). “Fear of Floating.” Quarterly Journal of Economics, CXVII(2), 379-408.

Canty A, Ripley B (2005). boot: Bootstrap R (S-PLUS) Functions. R package version 1.2-23, S original by Angelo Canty, R port by Brian Ripley.

Cavoli T, Rajan RS (2005). “Have Exchange Rate Regimes in Asia Become more Flexible Post Crisis? Re-visiting the Evidence.” Technical report, CIES Discussion Paper 0503. URL http: // [OpenAIRE]

Chu CSJ, Stinchcombe M, White H (1996). “Monitoring Structural Change.” Econometrica, 64(5).

Dooley M, Setser B (2005). “Global Balancing Act.” Wall Street Journal. URL http:// 20061019.html?mod=mktw.

Dooley MP, Folkerts-Landau D, Garber P (2003). “An Essay on the Revised Bretton Woods System.” Technical report, NBER Working Paper 9971. URL W9971.

Frankel J, Wei SJ (1994). “Yen Bloc or Dollar Bloc? Exchange Rate Policies of the East Asian Countries.” In T Ito, A Krueger (eds.), “Macroeconomic Linkage: Savings, Exchange Rates and Capital Flows,” University of Chicago Press.

Frankel JA, Fajnzylber E, Schmukler SL, Serven L (2001). “Verifying exchange rate regimes.” Journal of Development Economics, 66, 351-386.

Glaser B, Skanderup J (2005). “US-China Relations: Disharmony Signals End to Post-Sep 11 Honeymoon.” Comparative Connections.

Goldstein M (2003). “China's Exchange Rate Regime.” Testimony before U.S. House of Representatives, Subcommittee on domestic and international monetary policy, trade, and technology, Institute for International Economics.

Haldane AG, Hall SG (1991). “Sterling's Relationship with the Dollar and the Deutschemark: 1976-89.” The Economic Journal, 101, 436-443. [OpenAIRE]

39 references, page 1 of 3
Powered by OpenAIRE Open Research Graph
Any information missing or wrong?Report an Issue