This paper demonstrates that the estimated parameters in previous research, with wrong signs and absurd sizes, do not indicate market inefficiency and market behavior as they appear to. In the real world where forecasting errors are substantially large, a "correct" or an "unreasonable" parameter...

Purpose – The authors make assessment on RMB valuation and to contribute to the fierce debate on this important issue, which is perceived to have a great effect on the improvement or deterioration in trade balance. A triangular analysis approach is put forward and empirical assessment is made....

Purpose– The authors make assessment on RMB valuation and to contribute to the fierce debate on this important issue, which is perceived to have a great effect on the improvement or deterioration in trade balance. A triangular analysis approach is put forward and empirical assessment is made....

Exchange rate determination is of phenomenal importance in international economic relations and should be scrutinized with diverse perspectives and from various points of view. While RMB is pegged to the US dollar, the exchange rate between RMB and the euro is not fixed, due to that the exchange...