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.
JEL Classification Codes: E17
Published in Reprinted in Business Economics (October 2010), 45: 233-243 [DOI]