Box 1.2 again. The Economist argued that RMB appreciation wouldn’t have much impact on the US since the US doesn’t produce goods that compete with China. That used to be true.

BEIJING, Aug. 11 (Xinhua) -- The central parity rate of the Chinese currency renminbi, or the yuan, weakened 23 pips to 7.1405 against the U.S. dollar Monday, according to the China Foreign Exchange ...

This paper contributes to the literature on determining the real exchange rates by developing a model that is based on key propositions of the classical political economy within which the real ...