nep-cna 2010-03-20 papers

on China

Issue of 2010‒03‒20
one paper chosen by
Zheng Fang
Ohio State University

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

Estimated Macroeconomic Effects of a Chinese Yuan Appreciation

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
URL:	http://d.repec.org/n?u=RePEc:cwl:cwldpp:1755&r=cna

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