{
  "title": "Estimating China's \"Equilibrium\" Real Exchange Rate",
  "publication": "IMF Working Papers, October 1, 2005",
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  "summary": "The number of studies attempting to estimate the \"equilibrium\" real value of China's currency has proliferated in recent years as the country's presence in world markets has grown.",
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    {
      "heading": "Summary",
      "content": "- The number of studies attempting to estimate the \"equilibrium\" real value of China's currency has proliferated in recent years as the country's presence in world markets has grown.\n- These studies seek to establish whether a significant part of China's competitive prowess can be attributed to the foreign exchange value of the renminbi.\n- No consensus has emerged because the studies yield a very wide range of estimates."
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      "heading": "Key findings",
      "content": "- Sampled studies produce estimates of undervaluation ranging from zero to nearly 50 percent.\n- The wide variation in estimates is attributed to multiple influences:\n  - different methodologies used;\n  - explanatory variables included;\n  - subjective judgments of the various researchers in deriving their results;\n  - instability in underlying economic relationships, especially in a rapidly developing economy like China."
    },
    {
      "heading": "Analytical focus and concepts",
      "content": "- Primary analytical themes and technical terminology preserved from the source:\n  - Balance of payments\n  - Current account balance; current account position\n  - Exchange rate adjustments; Exchange rates; nominal exchange rate; Real exchange rates\n  - Foreign exchange\n  - Purchasing power parity; PPP approach; PPP equation; purchasing power parity method\n  - Balassa-Samuelson effect\n  - CPI; PPI; PPI ratio\n  - Equilibrium exchange rate\n\n---\n\n Content in this bundle\n\n- wp05202\n  - wp05202 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp05202 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/estimating-china-s-equilibrium-real-exchange-rate-18614"
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    "[Markdown version](/en/publications/wp/issues/2016/12/31/estimating-china-s-equilibrium-real-exchange-rate-18614/index.md)",
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    "Authors: Xiangming Li, Steven V Dunaway",
    "Published: October 1, 2005",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451862218.001",
    "The number of studies attempting to estimate the \"equilibrium\" real value of China's currency has proliferated in recent years as the country's presence in world markets has grown.",
    "These studies seek to establish whether a significant part of China's competitive prowess can be attributed to the foreign exchange value of the renminbi.",
    "No consensus has emerged because the studies yield a very wide range of estimates.",
    "Sampled studies produce estimates of undervaluation ranging from zero to nearly 50 percent.",
    "The wide variation in estimates is attributed to multiple influences:",
    "Primary analytical themes and technical terminology preserved from the source:",
    "**_wp05202**"
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