IDEAS home Printed from https://ideas.repec.org/a/ris/ecoint/0672.html
   My bibliography  Save this article

To what Extent is the Chinese Renminbi Undervalued? A Two-Country Model of Monopolistic Competition - Quanto è sottovalutato il Renminbi cinese? Un modello a due paesi di concorrenza monopolistica

Author

Listed:

Abstract

Contrast to the BEER, PEER and FEER approaches, this paper develops a two-country model of monopolistic competition to re-examine whether the Chinese Renminbi is undervalued and to what extent it is undervalued. A testable equation that governs the equilibrium exchange rate of Renminbi is derived. Based on US-China data on relative wage rates and relative real GDP, the numerical simulations suggest that relative to the US dollar, the Chinese currency is about 12.4% undervalued for the year of 2011. - In contrasto con gli approcci BEER, PEER e FEER, questo lavoro sviluppa un modello a due paesi di concorrenza monopolistica per riesaminare se il Renminbi è sottovalutato e di quanto. Viene specificata un’equazione che governa il tasso di cambio di equilibrio del Renminbi. Sulla base dei dati USA-Cina sui salari relativi e sui PIL reali relativi, le simulazioni numeriche suggeriscono che nell’anno 2011 la valuta cinese è stata sottovalutata di circa il 12,4% rispetto al dollaro USA.

Suggested Citation

  • Tseng, Hui-Kuan, 2012. "To what Extent is the Chinese Renminbi Undervalued? A Two-Country Model of Monopolistic Competition - Quanto è sottovalutato il Renminbi cinese? Un modello a due paesi di concorrenza monopolistica," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 65(4), pages 623-636.
    • Handle: RePEc:ris:ecoint:0672
    as

    Download full text from publisher

    File URL: http://www.iei1946.it/RePEc/ccg/TSENG%20623_636.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Chinese Renminbi; Monopolistic Competition;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:ecoint:0672. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Angela Procopio (email available below). General contact details of provider: https://edirc.repec.org/data/cacogit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.