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Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
3 / 742 |
Essay's paper body
He argued that it may be more suitable to developing country??s living standard. By his calculation, Chinese RMB is undervalued 79% against the US dollar.
Another way to evaluate how much Yuan is undervalued is to measure the Producer Price Index with the exchange rate. Exchange rate is very consistent with their relative PPI index...
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Exchange rate is very consistent with their relative PPI index. If we could use it as a relatively tool for exchange rate and compare the relative PPI data of China and US from 1997 we can see that the RMB should appreciate only about six to eight percent.
5. What the future lies?
when China will finally has a more flexible exchange rate system?
First China needs to fix its banking system...
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