Widening global imbalances, driven by reserve accumulation, can help us investigate how real exchange rates are determined. Standard theory would predict real exchange rate appreciation when there is an increase in net foreign assets. This column uses recent data from 75 countries to argue that, in practice, there is the opposite correlation in the particular case of reserve accumulation, notably in countries with higher capital controls and in developing countries.
François Godement, 16 April 2010
The delayed announcement of a US decision over China’s exchange-rate policy has stoked the fire of debate over trade relations. This column argues that the efforts of China’s main trade partners – the EU as well as the US – would be better spent on ensuring a steady rebalancing of China’s economy towards greater private consumption and imports rather than simply currency revaluation.
Most Read
-
Calvano, Calzolari, Denicolò, Pastorello
-
Catillon, Cutler, Getzen
-
Eggertsson, Summers
-
Blundell, Preston
-
Schoenmaker
-
Eichengreen, O'Rourke
-
Eichengreen
-
De Grauwe, Ji
-
Heckman, LaFontaine
-
Krugman
Blogs&Reviews
-
Motta, Peitz
-
Mancini-Griffoli, Martinez Peria, Agur, Ari, Kiff, Popescu, Rochon, Jakab
-
Mody
-
Felbermayr, Fuest, Gersbach, Ritschl, Thum, Braml
-
Ambrocio, Hasan, Jokivuolle, Ristolainen
Vox eBooks
Don't Miss
Guzman, Ocampo, Stiglitz
Marongiu Buonaiuti, Vergara Caffarelli
Eggertsson, Summers
Events
-
15 - 15 March 2019 / London, Royal Society / UK Network of Environmental Economists (UKNEE)
-
28 - 29 March 2019 / European Central Bank, Frankfurt / European Central Bank and the University of Ohio
-
28 - 29 March 2019 / Paris / SUERF - The European Money and Finance Forum Banque de France (BDF)
-
1 - 3 April 2019 / Florence, Italy / Florence School of Banking and Finance, European University Institute
-
8 - 10 April 2019 / Florence, Italy / Florence School of Banking and Finance, European University Institute
CEPR Policy Research
-
Gobillon, Solignac
-
Giglio, Maggiori, Stroebel, Weber
-
Summers, Fatás
-
Favero, Galasso
-
Butt, Churm, McMahon, Morotz, Schanz
-
Eichengreen, Avgouleas, Poiares Maduro, Panizza, Portes, Weder di Mauro, Wyplosz, Zettelmeyer
-
Baldwin, Beck, Bénassy-Quéré, Blanchard, Corsetti, De Grauwe, den Haan, Giavazzi, Gros, Kalemli-Ozcan, Micossi, Papaioannou, Pesenti, Pissarides , Tabellini, Weder di Mauro
-
Baldwin, Nakatomi
-
Thimann
-
Goodhart, Perotti