The Yuan’s Exchange Rates and Pass-through Effects on the Prices of Japanese and US Imports

Published By: ADBI on eSS | Published Date: May, 04 , 2010

This paper estimated the pass-through effects of yuan’s exchange rates on prices of the US and Japanese imports from the People’s Republic of China (PRC). Empirical results show that, a 1% nominal appreciation of the yuan would result in a 0.23% increase in prices of the US imports in the short run and 0.47% in the long run. Japanese import prices were relatively more responsive to changes of the bilateral exchange rates between the yuan and the yen. For a 1% nominal appreciation of the yuan against the yen, Japanese import prices would be expected to rise 0.55% in the short run and 0.99%, a complete pass-through, in the long run. [ADBI Working Paper 216]

Author(s): Yuqing Xing | Posted on: Nov 04, 2010 | Views(710) | Download (754)


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