This paper analyzes the ex-ante short-term impacts of the Chinese RMB appreciation on the Chinese and world economy, using a novel approach of modeling nominal exchange rate adjustment in the GTAP, a global CGE model. Scenario results show that Chinese economy will be affected negatively, with lower real GDP, lower employment rates, and a decline in the trade surplus. Chinese currency appreciation has positive impact on the GDP of the major countries and regions, although by a small margin. With higher Chinese exchange rate, trade balance for other trading partner countries improves with the exception of the U.S. © 2013 Society for Policy Modeling.
CITATION STYLE
Yang, J., Zhang, W., & Tokgoz, S. (2013). Macroeconomic impacts of Chinese currency appreciation on China and the Rest of World: A global CGE analysis. Journal of Policy Modeling, 35(6), 1029–1042. https://doi.org/10.1016/j.jpolmod.2013.07.003
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