Estimated Macroeconomic Effects of a Chinese Yuan Appreciation
19 Pages Posted: 11 Mar 2010
Date Written: March 10, 2010
This paper uses a multicountry macroeconometric model to estimate the macroeconomic effects of a Chinese yuan appreciation. The estimated effects on U.S. output and employment are modest. Positive effects on U.S. output from a decrease in imports from China are offset by negative effects on U.S. output from increased inflation and from a decrease in U.S. exports to China because of a Chinese contraction.
Keywords: Yuan appreciation
JEL Classification: E17
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