The Renminbi (RMB) is probably undervalued, according to some criteria. Would adjusting it fix the US-China trade deficit? Or the overall US trade deficit?
Category Archives: exchange rates
The enigmatic Yuan
The Yuan has not been moving much. Or has it? And does it matter much for the U.S. current account deficit
Some (delayed) reflections on whether the non-oil trade deficit stabilization at hand — or not
I was out of the country when these data were released, so I didn’t immediately write a post on the data. In any case several commentators covered the ground so well I didn’t have much to add immediately. Several forwarded the possibility of trade deficit (as a share of GDP) stabiization (see here and here), in light of the fact that the May trade release which showed a smaller than consensus deficit. In the past I made similar observations (see here). I remain hopeful, but am still not yet convinced.
Out of sample prediction of the euro, pound and CAD
Once more unto the breach.
What happens to the dollar when interest rates stop rising?
Further predictions of secular dollar weakness, from a portfolio balance perspective
The dollar and interest rate expectations
What can one read from asset responses to “news”
Exchange rate pass through and dollar decline
Is there a direct relationship running from a change in the dollar’s value and import and export prices and thence to consumer prices?
Is dollar depreciation a separate policy channel for trade balance adjustment?
The dollar is on the decline…more or less. Will this cause the long awaited adjustment?
The portfolio balance effect and reserve diversification
Implications from the debate over the Renminbi. And the Won. And the…
Interpreting and Re-interpreting Meese-Rogoff
What the Meese-Rogoff papers do and don’t say, and the implications for empirical exchange rate modeling