The Equilibrium RMB Exchange Rate Reconsideration in Edwards Model

Jimmy RAN

Research output: Other Conference ContributionsConference Paper (other)Other Conference Paperpeer-review


This paper empirically extends the Edwards (1988) framework in search of the equilibrium RMB exchange rate. His model is based on the balance of the internal and external factors and provides a list of the relevant real “fundamentals” that determine the behavior of the equilibrium real exchange rate for developing countries. I modify his equations to incorporate some Chinese special characteristics by inserting unemployment and foreign reserves, I find that RMB should have depreciated for the convergence of the equilibrium level.
Original languageEnglish
Publication statusPublished - Dec 2014
EventThe 8th Biennial Conference of Hong Kong Economic Association - Shandong University, Jinan, China
Duration: 13 Dec 201414 Dec 2014


ConferenceThe 8th Biennial Conference of Hong Kong Economic Association
OtherThe Hong Kong Economic Association and Shangdong University
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