Purchasing Power Parity and the Chinese Yuan

Results from unit root tests applied to the bilateral China - US real exchange rate do not support purchasing power parity between the two countries. However, tests of the real equivalent exchange rate for the Chinese yuan versus a traded-weighted basket of currencies support purchasing power parity. Due to severe non-normality, critical values for tests of the real equivalent exchange rate are obtained from the wild bootstrap.

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Year of publication:	2011
Authors:	Gregory, Richard Paul ; Shelley, Gary
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 31.2011, 2, p. 1247-1255
Publisher:	AccessEcon
Subject:	China \| purchasing power parity \| unit root test \| wild bootstrap

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	F3 - International Finance
Source:	RePEc - Research Papers in Economics

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