ScholarLens Back to search
2008•China Economic QuarterlyRequires access

Real Exchange Rate and Real Interest Differentials——An Empirical Analysis on Real Exchange Rate of RMB

G Biao, En Z

Open publisher page 0 citations

Abstract

This paper investigates the empirical relationship between real exchange rate and real interest rate differentials,export-import,where the currencies cover RMB/USD,RMB/JPY,RMB/HKD,and RMB/EURO.We find that there exists no significant and stable relationship between real exchange rate and real interest differentials.Furthermore,the real exchange rate of RMB exhibits apparent characteristics of autoregressive and nonlinear dynamic adjustment during the period we are concerned with.Therefore,we conclude that it is quite important to examine the data generating mechanism of real exchange of RMB itself in further studies.

About this research paper

What this paper is about

This paper investigates the empirical relationship between real exchange rate and real interest rate differentials,export-import,where the currencies cover RMB/USD,RMB/JPY,RMB/HKD,and RMB/EURO.We find that there exists no significant and stable relationship between real exchange rate and real interest differentials.Furthermore,the real exchange rate of RMB exhibits apparent characteristics of autoregressive and nonlinear dynamic adjustment during the period we are concerned with.Therefore,we conclude that it is quite important to examine the data generating mechanism of real exchange of RMB itself in further studies.

Why it matters

A significance statement is not available in the OpenAlex record.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

This paper investigates the empirical relationship between real exchange rate and real interest rate differentials,export-import,where the currencies cover RMB/USD,RMB/JPY,RMB/HKD,and RMB/EURO.We find that there exists no significant and stable relationship between real exchange rate and real interest differentials.Furthermore,the real exchange rate of RMB exhibits apparent characteristics of autoregressive and nonlinear dynamic adjustment during the period we are concerned with.Therefore,we conclude that it is quite important to examine the data generating mechanism of real exchange of RMB itself in further studies.

Key concepts: Renminbi, Exchange rate, Economics, Autoregressive model, Monetary economics, Real interest rate, Econometrics, Effective exchange rate

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
Real Exchange Rate and Real Interest Differentials——An Empirical Analysis on Real Exchange Rate of RMB — Research Paper | ScholarLens