The RMB USD Exchange Rate and Its Association with Bilateral Trade
Restricted Access
Creator
Lu, Mi
Advisor
Wise, Andrew
Abstract
The Renminbi (RMB) and U.S. dollar (USD) exchange rate and its association with China-U.S. bilateral trade has been a hot issue of debate on both sides of the Pacific for many years. This paper tests the hypothesis that variance of the RMB/USD exchange rate has an association with the bilateral trade deficit. Previous studies' conclusions fall into two opposite camps, with some scholars arguing that the exchange rate has nothing to do with the trade deficit, while other scholars insist it does, at least in the long term. The regression model in my thesis finds that the federal funds rate plays a key role in determining the trade deficit. Based on the findings, I offer different policy recommendations to the U.S. Congress, the Federal Reserve, and Peoples' Bank of China at the end of the paper.
Description
M.P.P.
Permanent Link
http://hdl.handle.net/10822/760976Date Published
2015Subject
Type
Publisher
Georgetown University
Extent
42 leaves
Metadata
Show full item recordRelated items
Showing items related by title, author, creator and subject.
-
Does Bilateral Free Trade Agreement Actually Increase Trade in Services?
Jung, Sung Eun (Georgetown University, 2012)Free trade is a topic of heated debate: domestic consumers and producers in the export sector advocate freer access to foreign markets and a greater variety of goods and services, whereas domestic workers and producers in ...