Renminbi Exchange Rate: Peg to A Wide Band Currency Basket. Issue 1 (January 2017)
- Record Type:
- Journal Article
- Title:
- Renminbi Exchange Rate: Peg to A Wide Band Currency Basket. Issue 1 (January 2017)
- Main Title:
- Renminbi Exchange Rate: Peg to A Wide Band Currency Basket
- Authors:
- Yu, Yongding
Zhang, Bin
Zhang, Ming - Abstract:
- Abstract : Persistent renminbi (RMB) devaluation expectations are one of the greatest threats to China's macroeconomic stability. Market interventions backed by huge foreign exchange reserves and capital controls are not sufficient to eliminate the expectations of devaluation. Creating a market‐based and flexible RMB exchange rate regime holds the key to the elimination of devaluation expectations. The present paper compares the pros and cons of several policy options, and proposes to introduce, as a transition to free floating, a new exchange rate regime pegged to a currency basket with a wide band. The new regime should be able to give the RMB exchange rate enough flexibility to eliminate devaluation expectations as well as prevent excessive overshooting. To ensure a smooth transition, the new regime needs to be supported by controlling cross‐border capital flows.
- Is Part Of:
- China & world economy. Volume 25:Issue 1(2017)
- Journal:
- China & world economy
- Issue:
- Volume 25:Issue 1(2017)
- Issue Display:
- Volume 25, Issue 1 (2017)
- Year:
- 2017
- Volume:
- 25
- Issue:
- 1
- Issue Sort Value:
- 2017-0025-0001-0000
- Page Start:
- 58
- Page End:
- 70
- Publication Date:
- 2017-01
- Subjects:
- currency basket -- exchange rate expectations -- foreign‐exchange reserves
E42 -- E58 -- F41
Economic indicators -- China -- Periodicals
China -- Economic conditions -- 1976- -- Periodicals
China -- Economic policy -- 1976- -- Periodicals
China -- Commerce -- Periodicals
Economics -- China -- Periodicals
337.951 - Journal URLs:
- http://firstsearch.oclc.org ↗
http://firstsearch.oclc.org/journal=1671-2234;screen=info;ECOIP ↗
http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1749-124X ↗
http://www.blackwell-synergy.com/loi/cwe ↗
http://www.blackwellpublishing.com/journal.asp?ref=1671-2234&site=1 ↗
http://www.ingentaconnect.com/content/bsc/cwe ↗
http://onlinelibrary.wiley.com/ ↗ - DOI:
- 10.1111/cwe.12186 ↗
- Languages:
- English
- ISSNs:
- 1671-2234
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library DSC - 3180.096000
British Library DSC - BLDSS-3PM
British Library HMNTS - ELD Digital store - Ingest File:
- 1540.xml