The Dynamics of Real Interest Rates, Real Exchange Rates and the Balance of Payments in China: 1980-2002
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Summary:
Based on China's experience between 1980 and 2002, a cointegrated vector autoregression model was established to explore the relationships among real interest rates, real exchange rates and balance of payments in China. Taking into account institutional changes, the empirical study shows that significant and usually non-monotonic interactions exist between these three variables. The paper discusses theoretical and policy implications of the empirical result.
Series:
Working Paper No. 2003/067
Subject:
Central banks Exchange rate arrangements Exchange rates Financial services Foreign exchange International reserves Real effective exchange rates Real exchange rates Real interest rates
English
Publication Date:
April 1, 2003
ISBN/ISSN:
9781451848922/1018-5941
Stock No:
WPIEA0672003
Pages:
28
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