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 language | English |
|---|---|
| Pages (from-to) | 853-857 |
| Number of pages | 5 |
| Journal | Applied Economics Letters |
| Volume | 16 |
| Issue number | 8 |
| DOIs | |
| Publication status | Published - 2009 Jul 14 |
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All Science Journal Classification (ASJC) codes
- Economics and Econometrics
Cite this
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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 journal › Article
TY - JOUR
T1 - Currency Appreciation, Rising Financial Asset Values, and Output Fluctuations in China
AU - Hsing, Yu
AU - Hsieh, Wen-Jen
PY - 2009/7/14
Y1 - 2009/7/14
N2 - 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%.
AB - 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%.
UR - http://www.scopus.com/inward/record.url?scp=67650087585&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=67650087585&partnerID=8YFLogxK
U2 - 10.1080/13504850701222061
DO - 10.1080/13504850701222061
M3 - Article
VL - 16
SP - 853
EP - 857
JO - Applied Economics Letters
JF - Applied Economics Letters
SN - 1350-4851
IS - 8
ER -