CFDP 1755

Estimated Macroeconomic Effects of a Chinese Yuan Appreciation


Publication Date: March 2010

Pages: 18


This paper uses a multicountry macroeconometric model to estimate the macroeconomic effects of a Chinese yuan appreciation. The estimated effects on U.S. output and employment are modest. Positive effects on U.S. output from a decrease in imports from China are offset by negative effects on U.S. output from increased inflation and from a decrease in U.S. exports to China because of a Chinese contraction.


Yuan appreciation

JEL Classification Codes:  E17


Published in Reprinted in Business Economics (October 2010), 45: 233-243 [DOI]