Recent Developments in Exchange Rate Economics

2013 ◽  
Keyword(s):  
Exchange Rate ◽  
Recent Developments ◽  
Exchange Rate Economics

Exchange-rate economics in transition countries

2005 ◽  
Vol 29 (2) ◽  
pp. 123-129 ◽  
Author(s):  
Balázs Égert ◽  
Ali M. Kutan
Keyword(s):  
Exchange Rate ◽  
Transition Countries ◽  
Exchange Rate Economics

Exchange Rate Economics: 1986

1987 ◽  
Vol 97 (385) ◽  
pp. 1 ◽  
Author(s):  
Rudiger Dornbusch
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Economics

scholarly journals Trilemma Challenges for the People's Republic of China

2015 ◽  
Vol 32 (1) ◽  
pp. 49-89 ◽  
Author(s):  
Masahiro Kawai ◽  
Li-Gang Liu
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rate ◽  
The United States ◽  
People’S Republic Of China ◽  
Capital Account ◽  
People's Republic Of China ◽  
Republic Of China ◽  
Interest Rate Liberalization ◽  
Recent Developments

This paper first reviews recent developments in exchange rate regimes, capital account liberalization, interest rate liberalization, and monetary policymaking in the People's Republic of China (PRC). It then observes that the PRC's monetary policy autonomy may have been reduced with falling capital control effectiveness and a rigid exchange regime that is still tightly managed against the United States (US) dollar. This hypothesis is investigated empirically using both the Taylor rule and a McCallum-like rule to test whether the PRC's money market interest rate and/or quantity of money supply are being increasingly influenced by the US interest rate or reserve accumulation. The paper concludes that there is considerable evidence suggesting diminishing monetary policy autonomy in the PRC. To regain policy autonomy, the monetary authority needs to substantially increase exchange rate flexibility of the renminbi as long as it continues to pursue capital account opening.

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