Currency Appreciation, Rising Financial Asset Values, and Output Fluctuations in China

Yu Hsing, Wen-Jen Hsieh

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Applying a general equilibrium model and the Newey-West method, this article finds that real output in China has a positive relationship with real M2, the government deficit/GDP ratio, and the real stock price and a negative relationship with real appreciation. The expected inflation rate is insignificant. It is estimated that when the real effective exchange rate rises 1%, real GDP in China is expected to decrease by 0.938% and that a 1% increase in real stock prices would raise output by 0.126%.

Original languageEnglish
Pages (from-to)853-857
Number of pages5
JournalApplied Economics Letters
Volume16
Issue number8
DOIs
Publication statusPublished - 2009 Jul 14

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Financial assets
China
Stock prices
Asset value
Output fluctuations
Currency
Inflation rate
Real effective exchange rate
Real GDP
Government deficits
Expected inflation
General equilibrium model
Real output

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

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abstract = "Applying a general equilibrium model and the Newey-West method, this article finds that real output in China has a positive relationship with real M2, the government deficit/GDP ratio, and the real stock price and a negative relationship with real appreciation. The expected inflation rate is insignificant. It is estimated that when the real effective exchange rate rises 1{\%}, real GDP in China is expected to decrease by 0.938{\%} and that a 1{\%} increase in real stock prices would raise output by 0.126{\%}.",
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Currency Appreciation, Rising Financial Asset Values, and Output Fluctuations in China. / Hsing, Yu; Hsieh, Wen-Jen.

In: Applied Economics Letters, Vol. 16, No. 8, 14.07.2009, p. 853-857.

Research output: Contribution to journalArticle

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