Determining the RMB Exchange Regime

Posted: 3 May 2010

See all articles by Xiaobing Feng

Xiaobing Feng

affiliation not provided to SSRN

Ilan Alon

University of Agder - School of Management; Rollins College; Georgetown University

Date Written: May 2, 2010

Abstract

Although China has claimed since 2005 that it will move towards a more market-oriented system of managing its foreign exchange, it has remained in part a managed economic system. This article examines the relative importance of market force and currency arrangements in determining the RMB exchange regime using both traditional linear and nonlinear artificial intelligence models. We find that the emphasis on the US Dollar as a reference currency has declined. Fundamentalist forces are strong determinants of the currency exchange.

Keywords: China Currency, Basket Regime, Market Forces, Exchange Arrangements, Artificial Neural Network

JEL Classification: E42, D83, D87

Suggested Citation

Feng, Xiaobing and Alon, Ilan, Determining the RMB Exchange Regime (May 2, 2010). Available at SSRN: https://ssrn.com/abstract=1599249 or http://dx.doi.org/10.2139/ssrn.1599249

Xiaobing Feng

affiliation not provided to SSRN ( email )

Ilan Alon (Contact Author)

University of Agder - School of Management ( email )

N-4604 Kristiansand
Norway

Rollins College ( email )

Winter Park, FL 32789
United States

Georgetown University ( email )

Washington, DC 20057
United States

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