Why has China kept its exchange rate weak and undervalued for most of the past fifteen years? A large literature in IPE argues that interest groups influence exchange rate policy, but many believe that Chinese policymakers are immune to interest group pressures due to high degree of state...

Exchange rate policy is influenced by numerous political factors, including the preferences of industries, policymakers, political parties as well as institutional arrangements, such as democracy, elections, the electoral system, the number of veto players and central bank independence. However,...

DEMANDING DEVALUATION -- Contents -- List of Figures -- List of Tables -- Acknowledgments -- List of Abbreviations -- Introduction -- 1. A Conditional Preference Theory of Undervalued Exchange Rates -- 2. Cross-Country Patterns in Exchange Rate Policy and Preferences -- 3. Why China Undervalues...