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%.
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U2 - 10.1080/13504850701222061
DO - 10.1080/13504850701222061
M3 - Article
AN - SCOPUS:67650087585
VL - 16
SP - 853
EP - 857
JO - Applied Economics Letters
JF - Applied Economics Letters
SN - 1350-4851
IS - 8
ER -