Robert M. La Follette School of Public Affairs

China’s Current Account and Exchange Rate

The authors examine whether the Chinese exchange rate is misaligned and how Chinese trade flows respond to the exchange rate and to economic activity. They find, first, that the currency is substantially below the value their cross-country estimates predicted. They also find that Chinese multilateral trade flows respond to relative prices.

Additional Info

  • Volume or issue no.: La Follette School Working Paper No. 2007-030
  • Author(s): Yin-Wong Cheung, Menzie D. Chinn and Eiji Fujii