Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The PPP approach revisited: A study of RMB valuation against the USD
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. NHH, Norwegian School of Economics, Norway.
Number of Authors: 4
2017 (English)In: Journal of International Money and Finance, ISSN 0261-5606, E-ISSN 1873-0639, Vol. 77, 18-38 p.Article in journal (Refereed) Published
Abstract [en]

We analyze the alleged undervaluation of the Chinese renminbi against the US dollar through an application of the relative PPP hypothesis, the PPP approach. The PPP approach measures the relative misalignment of a currency by estimating the relationship between log price levels and log per capita real incomes from a cross section of countries. We estimate this relationship by using ICP 2011 and incorporating model selection tests. Our results confirm that price level-real income relationship is best approximated by a quadratic functional form. We show that, using this functional form, the PPP approach does not reveal any evidence of renminbi undervaluation as of 2011, and this result is robust to various sensitivity tests.

Place, publisher, year, edition, pages
2017. Vol. 77, 18-38 p.
Keyword [en]
Renminbi, Currency misalignment, Penn effect
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:su:diva-147867DOI: 10.1016/j.jimonfin.2017.06.006ISI: 000410677200002OAI: oai:DiVA.org:su-147867DiVA: diva2:1152905
Available from: 2017-10-26 Created: 2017-10-26 Last updated: 2017-10-26Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Almås, Ingvild
By organisation
Institute for International Economic Studies
In the same journal
Journal of International Money and Finance
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 1 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf