The renminbi bloc is here: Asia down, the rest of the world to go?

Arvind Subramanian, Martin Kessler, 27 October 2012

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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.

Topics: Global economy, International trade
Tags: China, global currency, renminbi

The renminbi’s prospects as a global reserve currency

Eswar Prasad, Lei (Sandy) Ye, 16 February 2012

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Popular discussions about the prospects of China’s currency – the renminbi – range from the view that it is on the threshold of becoming the dominant global reserve currency to the concern that rapid capital-account opening poses serious risks for China.

Topics: International finance, International trade
Tags: China, exchange-rate policy, globalisation, renminbi

The rise of the renminbi as international currency: Historical precedents

Jeffrey Frankel, 10 October 2011

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All of a sudden, the renminbi is being touted as the next big international currency. Just in the last year or two, the Chinese currency has begun to internationalise along a number of dimensions. A renminbi bond market has grown rapidly in Hong Kong, and one in renminbi bank deposits. Some of China’s international trade is now invoiced in the currency.

Topics: International finance
Tags: China, dollar, renminbi, reserve currency

China’s currency and the US economy

Fred Bergsten, 1 November 2010

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In a 19 October column on this site, “A currency war the US cannot win”, Yiping Huang argued that comprehensive policy packages in China and the US, including but ranging well beyond exchange rate realignment, are required to achieve the needed global rebalancing.

Topics: Global economy, International trade
Tags: China, exchange-rate policy, global imbalances, renminbi, US

Can China save the world by consuming more?

Hans Genberg, Wenlang Zhang, 25 April 2010

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“China is making all of us poorer” writes Paul Krugman in his blog at the New York Times (Krugman 2010). He is referring to the current account surplus of the Chinese economy draining aggregate demand from the rest of the world and leading to lower employment and income.

Topics: International finance, Macroeconomic policy
Tags: Chinese saving, global imbalances, renminbi, unemployment

Estimating the effect of renminbi appreciation on US jobs: A comment on Francois' China result

William R. Cline, 23 April 2010

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In a recent study, Francois (2010) estimates that if China appreciated the renminbi by 10%, the US trade balance would rise by $100 billion but the number of US jobs would decline by 430,000. He uses a computable general equilibrium (CGE) model to make this calculation. He allows for below-full capacity and sticky wages so that it is possible for a change in the external balance to af

Topics: Exchange rates
Tags: competitiveness, Francois, renminbi

The US-Sino currency dispute: Introducing a new eBook

Simon J Evenett, 16 April 2010

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Thanks to deft diplomatic footwork, a US-China confrontation over the renminbi has been avoided – or at least postponed. This is a very good thing. Escalation of this conflict between the world’s two largest traders is the last thing the world economy needs.

Topics: Exchange rates
Tags: China, exchange-rate policy, geopolitics, renminbi, US-Sino currency dispute

The US-Sino Currency Dispute: New Insights from Economics, Politics, and Law

Simon J Evenett, 15 April 2010

Edited by Simon J Evenett

Published 15 April 2010

URL: www.voxeu.org/reports/currency_dispute.pdf
Topics: Exchange rates, Global crisis
Tags: Chinese exchange rate, global crisis, renminbi, yuan undervaluation

Is China's currency undervalued?

Helmut Reisen, 16 April 2010

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Most economists agree that allowing global current account imbalances, notably the US deficit and the Chinese surplus, and their accompanying capital flows to accumulate contributed to the over-leveraging and under-pricing of risk that triggered the crisis.

Topics: Exchange rates, Global crisis
Tags: exchange rate policy, global imbalances, renminbi

Krugman’s Chinese renminbi fallacy

Yiping Huang, 26 March 2010

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Paul Krugman is one of the international economists I most respect. He is a towering figure in the study of international trade. But his understanding of some international economic policy issues is, to put it generously, naïve.

Topics: Exchange rates, International trade
Tags: China, global imbalances, renminbi

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