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- Title
EL RÉGIMEN CAMBIARIO EN CHINA: UN EJEMPLO PARA ESTUDIAR NUEVAS POLÍTICAS DE TIPO DE CAMBIO EN LOS PAÍSES EMERGENTES DE ASIA.
- Authors
Sell, Friedrich
- Abstract
In this paper, we discuss new aspects of exchange rate policy which can be observed in the emerging economies. In the first place, we concentrate on the recent strategy of systematic undervaluation of one's own currency --figuring prominently among "big" players such as China-- and the most likely implications of such a strategy for domestic allocation, distribution and stabilization goals. On the background of Germany's experiences in 1969, almost on the eve of the Bretton Woods' system collapse, we secondly model a speculative attack on an undervalued currency in the vein of the Flood-Garber seminal paper from 1984. Now, however, the country in concern possesses strong rather than weak fundamentals. We finally propose a sequence of reforms/policies which should be implemented in China on its still long way to an autonomous monetary and a flexible exchange rate with little if any capital controls. A brief summary and an outlook for future research close the paper.
- Subjects
CHINA; GERMANY; FOREIGN exchange rate laws; MONETARY policy; RENMINBI; DEVALUATION of currency; FOREIGN exchange accounting
- Publication
Revista de Economía Mundial, 2009, Issue 21, p227
- ISSN
1576-0162
- Publication type
Article