The increasing volatility of exchange rates after the fall of the Bretton Woods agreements has been a constant source of concern for both policymakers and academics.
Exchange-rate volatility is a problem for trade … especially when financial development is low
Jérôme Héricourt, Sandra Poncet, 19 January 2013
Capital controls: Gates versus walls
Michael W Klein, 17 January 2013
Capital controls are no longer considered rogue policies.
Trade liberalization and embedded institutional reform: Evidence from Chinese exporters
Amit Khandelwal, Shang-Jin Wei, Peter K. Schott , 2 December 2012
Vox readers can download CEPR Discussion Paper 9246 for free here.
Growth slowdowns redux: Avoiding the middle-income trap
Barry Eichengreen, Donghyun Park, Kwanho Shin, 11 January 2013
The rapid economic growth of so-called emerging markets is one of the leading storylines of our age. Arguably, it is the most important economic development affecting the world’s population in the first decade of the 21st century. Rapid economic growth has lifted millions out of poverty.
The appreciating renminbi
Philippe Bacchetta, Kenza Benhima, Yannick Kalantzis, 9 January 2013
In the recent US presidential campaign, China was accused again of currency manipulation. In other words, the Chinese central bank is accused of maintaining the exchange rate at an artificially low level compared to its equilibrium value, including heavy intervention in the foreign exchange market.
Trade liberalisation and embedded institutional reform: Evidence from Chinese exporters
Amit Khandelwal, Peter K. Schott , Shang-Jin Wei, 15 January 2013
Economists traditionally assess the welfare losses of trade barriers without considering the underlying institutions that support them. In fact, these institutions may amplify welfare losses substantially.
China’s pure exporter subsidies: Protectionism by exporting
Fabrice Defever, Alejandro Riaño, 4 January 2013
On 17 September last year, the US requested consultations with China concerning a wide range of export-contingent measures – grants, tax preferences and interest-rate subsidies, totalling at least $1 billion – in apparent violation of the WTO’s Agreement on Subsidies and Countervailing Measures, China’s accession protocol and article XVI of the GATT.
Value-added exchange rates
Rudolfs Bems, Robert Johnson, 6 December 2012
Real effective exchange rates (REERs) are widely used to gauge competitiveness. Yet conventional REERs, based on gross trade flows and consumer price indexes (CPIs), are not well suited to that role when imports are used to produce exports – i.e., with vertical specialisation in trade.
The renminbi bloc is here: Asia down, the rest of the world to go?
Arvind Subramanian, Martin Kessler, 27 October 2012
The staggering economic rise of China in the last three decades leads to the question of the potential internationalisation of its currency, the renminbi (RMB). Internationalisation has different dimensions. An international currency is widely used in financial and trade transactions, and crucially it is used as a store of value.
Global Rebalancing 2.0
Linda Lim, Ronald U Mendoza , 24 September 2012
The discussion on global rebalancing is at a crossroads, and much of what will shape policy options moving forward will have to be taken up in roundtables that include more countries than the two usual suspects, China and the US.
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