This study will demonstrate, through an econometric model in time series, if and how the Chinese basket peg has changed in relation to the weight that the European single currency holds within it. Specifically, utilizing Frankel's (1994) econometric model, as revisited by Mele (2010) enriched by...

This paper attempts to assess the compatibility of China with its present dollar-based exchange rate policies. Assessment is made in terms of the real convergence criteria suggested by the optimum currency areas (OCA) theory and the nominal convergence criteria specified by the Maastricht...

China has been provoked into speeding renminbi internationalization. But despite rapid growth in offshore financial markets in RMB, the Chinese authorities are essentially trapped into maintaining exchange controls-reinforced by financial repression in domestic interest rates→to avoid an...