Abstract
This paper uses a multicountry macroeconometric model to estimate the macroeconomic effects of a Chinese yuan appreciation against the U.S. dollar. The estimated effects on U.S. output and employment are modest. Positive effects on U.S. output are roughly offset by negative effects from a decrease in Chinese output and an increase in U.S. import prices.
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References
Fair, Ray C. 2004. Estimating How the Macroeconomy Works. Harvard University Press.
Fair, Ray C. 2009. “Has Macro Progressed?,” Cowles Foundation Discussion Paper 1728, December.
Galí, Jordi, and Mark Gertler . 2007. “Macroeconomic Modeling for Monetary Policy Evaluation.” Journal of Economic Perspectives, 21: 25–45.
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Additional information
*Ray C. Fair is the John C. Musser Professor of Economics and a Fellow at the International Center for Finance at Yale University. He has been at Yale and associated with the Cowles Foundation for Research in Economics since 1974. From 1968 to 1974, he was an assistant professor at Princeton University. He was elected to be a Fellow of the Econometric Society in 1977. His teaching and research interests have emphasized macroeconomics and macroeconometric models. He holds a B.A. in economics from Fresno State University and a Ph.D. from the Massachusetts Institute of Technology.
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Fair, R. Estimated Macroeconomic Effects of a Chinese Yuan Appreciation. Bus Econ 45, 233–243 (2010). https://doi.org/10.1057/be.2010.31
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DOI: https://doi.org/10.1057/be.2010.31