Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
965109 | Journal of the Japanese and International Economies | 2011 | 16 Pages |
Abstract
The Chinese authorities described the management of the renminbi after its 2005 unpegging from the US dollar as involving a basket of trading partner currencies. Outside analysts have detected few signs of such management. We find that, in the 2Â years from mid-2006 to mid-2008, the renminbi strengthened gradually against trading partners' currencies within a narrow band. In mid-2008, the financial crisis interrupted this experiment and the bilateral renminbi/dollar exchange rate stabilised at 6.8. The 2006-2008 experience suggests that a shared policy of gradual nominal effective appreciation renders East Asian currencies quite stable against one another. Such a shared policy would create favourable conditions for regional monetary cooperation.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Guonan Ma, Robert N. McCauley,