The Dynamics of Real Interest Rates, Real Exchange Rates and the Balance of Payments in China : 1980-2002

Author/Editor:

Zhongxia Jin

Publication Date:

April 1, 2003

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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. 03/67

Subject:

English

Publication Date:

April 1, 2003

ISBN/ISSN:

9781451848922/1018-5941

Stock No:

WPIEA0672003

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

28

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