On China’s Exchange Rate Regime: Is Euro outside?

• Authors: Mele Marco

Abstracts

EN

This study will demonstrate, through an econometric model in time series, if and how the Chinese basket peg has changed in relation to the weight that the European currency holds within it. Specifically, utilizing Frankel’s (1994) econometric model but revisited new approach enriched by Hildreth-Lu’ method, our objective is to verify if the Eurozone crisis has affected the inner balance of the Chinese basket-peg, swaying it from the Euro towards a more favorable dollar. Finally we find an evident tendency of Dollar and South Korea Won to increase the weights in Chinese basket peg with a clear deterioration of the euro role

Keywords

EN

Exchange Rate; China; Hildreth-Lu’ method; Chinese Basket peg; Euro

Discipline

• ECONOMICS: ECONOMICS

• Publisher: University Service Publishing, Prague, Czech Republic
• Journal: International Economics Letters
• Year: 2014
• Volume: 3
• Issue: 2
• Pages: 49-58

Contributors

author

Mele Marco

• is an Aggregate Professor in Economics, at the UNINT University of Rome