Pitfalls in measuring exchange rate misalignment
Subtitle: the yuan and other currencies
By: Yin-Wong Cheung, Menzie D. Chinn, Eiji Fujii.
Contributors: Chinn, Menzie David.; Fujii, Eiji.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 14168; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 14168.
Publisher: National Bureau of Economic Research
Published: 2008
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "We evaluate whether the Renminbi (RMB) is misaligned, relying upon conventional statistical methods of inference.  A framework built around the relationship between relative price and relative output levels is used.  We find that, once sampling uncertainty and serial correlation are accounted for, there is little statistical evidence that the RMB is undervalued, even though the point estimates usually indicate economically significant misalignment.  The result is robust to various choices of country samples and sample periods, as well as to the inclusion of control variables.  We then update the results using the latest vintage of the data to demonstrate how fragile the results are.  We find that whatever misalignment we detected in our previous work disappears in this data set"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 7/23/2008.

Includes bibliographical references.

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