nep-cna New Economics Papers
on China
Issue of 2010‒03‒20
one paper chosen by
Zheng Fang
Ohio State University

  1. Estimated Macroeconomic Effects of a Chinese Yuan Appreciation By Ray C. Fair

  1. By: Ray C. Fair (Cowles Foundation, Yale University)
    Abstract: This paper uses a multicountry macroeconometric model to estimate the macroeconomic effects of a Chinese yuan appreciation. The estimated effects on U.S. output and employment are modest. Positive effects on U.S. output from a decrease in imports from China are offset by negative effects on U.S. output from increased inflation and from a decrease in U.S. exports to China because of a Chinese contraction.
    Keywords: Yuan appreciation
    JEL: E17
    Date: 2010–03

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