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

Author/Editor: Jin, Zhongxia
Publication Date: April 01, 2003
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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(s): Real interest rates | China | Exchange rates | Balance of payments | Economic models | China, People's Republic of

Author's Keyword(s): Interest Rates | Exchange Rates | China
Publication Date: April 01, 2003
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA0672003 Pages: 27
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