Munich Personal RePEc Archive

Is the Chinese Renminbi Undervalued?

Tatom, John (2007): Is the Chinese Renminbi Undervalued? Published in: Research Buzz , Vol. 3, No. 3 (31 March 2007): pp. 1-3.


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The Chinese government has come under increasing criticism from both the U.S. government and some critics in U.S. industry for manipulating its currency. This article offers some insight on whether the yuan is correctly valued. Evidence suggests that, regardless of whether a fixed exchange rate or a market-driven exchange rate is used, the yuan is close to a correct value, and efforts to force more appreciation could be deflationary for China.

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