The Dynamics of Real Interest Rates, Real Exchange Rates and the Balance of Payments in China
Author: Mr.Zhongxia Jin
Publisher: International Monetary Fund
Published: 2003-04-01
Total Pages: 29
ISBN-13: 1451848927
DOWNLOAD EBOOKBased on China's experience between 1980 and 2002, a cointegrated vector autoregression model was established to explore the relationships among real interest rates, real exchange rates and balance of payments in China. Taking into account institutional changes, the empirical study shows that significant and usually non-monotonic interactions exist between these three variables. The paper discusses theoretical and policy implications of the empirical result.