Estimated Macroeconomic Effects of a Chinese Yuan Appreciation

19 Pages Posted: 11 Mar 2010

See all articles by Ray C. Fair

Ray C. Fair

Yale University - Cowles Foundation; Yale School of Management - International Center for Finance

Date Written: March 10, 2010

Abstract

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

Suggested Citation

Fair, Ray C., Estimated Macroeconomic Effects of a Chinese Yuan Appreciation (March 10, 2010). Cowles Foundation Discussion Paper No. 1755. Available at SSRN: https://ssrn.com/abstract=1568103 or http://dx.doi.org/10.2139/ssrn.1568103

Ray C. Fair (Contact Author)

Yale University - Cowles Foundation ( email )

Box 208281
New Haven, CT 06520-8281
United States
203-432-3715 (Phone)
203-432-6167 (Fax)

HOME PAGE: http://fairmodel.econ.yale.edu

Yale School of Management - International Center for Finance ( email )

Box 208200
New Haven, CT 06520
United States
203-432-3715 (Phone)
203-432-6167 (Fax)

HOME PAGE: http://fairmodel.econ.yale.edu

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