Some grist for the mill for all those who complain about the yuan being artificially too low.
http://cowles.econ.yale.edu/P/cd/d17b/d1755.pdf
This paper uses a multicountry macroeconometric model to estimate the
macroeconomic effects of a Chinese yuan appreciation. The estimated effects
on U.S. output and employment are modest. Positive effects on U.S. output
from a decrease in imports from China are offset by negative effects on U.S.
output from increased inflation and from a decrease in U.S. exports to China
because of a Chinese contraction.
This paper uses a multicountry macroeconometric model to estimate the
macroeconomic effects of a Chinese yuan appreciation. The estimated effects
on U.S. output and employment are modest. Positive effects on U.S. output
from a decrease in imports from China are offset by negative effects on U.S.
output from increased inflation and from a decrease in U.S. exports to China
because of a Chinese contraction.
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