How Much is the Chinese Currency Undervalued? A Quantitative Estimation
Posted: 13 Sep 2004
This paper conducts a quantitative estimation for the equilibrium value of the Chinese currency, the RMB. After controlling for heteroskedasticity, we find that the RMB was undervalued by 22.5% in 2001, with a p-value of 0.286. These findings confirm that the RMB was undervalued, although the results are not statistically significant.
Keywords: China, currency value, exchange rate, yuan, valuation, RMB
JEL Classification: F31, C31
Suggested Citation: Suggested Citation