| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
Nominal and Real Exchange Rate Change by China: Global Impacts on Agricultural Prices
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| Autores: |
MacDonald, Stephen
Seeley, Ralph
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| Data: |
2007-06-27
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| Ano: |
2007
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| Palavras-chave: |
Demand and Price Analysis
International Relations/Trade
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| Resumo: |
Replaced with revised version of paper 06/15/07.
China's exchange rate policy has become an important factor in world agricultural trade. The renminbi, while no longer fixed in U.S. dollar terms, is subject to significant intervention, and is widely regarded as undervalued. In the long run, an undervalued exchange rate is self-correcting, as increases in the money supply raise inflation, revaluing the currency in real terms. Adjusting a real exchange rate through inflation has different consequences for Chinas economy compared with an adjustment in the nominal exchange rate. The consequences for world agricultural production and trade are also different. To capture these differences, a static, partial equilibrium model was extended to include macro-economic effects. Parameter values for the model were derived from USDAs Country Linker System (CLS) for 39 regions and 24 agricultural commodities, and from the literature on exchange rate pass-through to inflation and output. The results illustrate how standard partial equilibrium analysis overstates the impact of Chinas nominal exchange rate adjustment by overlooking the impacts on inflation.
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| Tipo: |
Conference Paper or Presentation
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| Idioma: |
Inglês
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| Identificador: |
26377
http://purl.umn.edu/9692
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| Editor: |
AgEcon Search
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| Relação: |
American Agricultural Economics Association>2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon
Selected Paper
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| Formato: |
21
application/pdf
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