Robert M. La Follette School of Public Affairs

The Illusion of Precision and the Role of the Renminbi in Regional Interaction

The Chinese renminbi might not be as undervalued as many analysts claim. They find that the currency might even be slightly overvalued, although they concede that this is a small possibility. Changes in China's currency value should be approached very carefully, as abrupt policy changes may cause unintended damage to China's difficult-to-manage economy.

Additional Info

  • Volume or issue no.: La Follette School Working Paper No. 2006-023
  • Author(s): Yin-Wong Cheung, Menzie D. Chinn and Eiji Fujii